Markets rebound after volatility as investors track Iran–US signals

Global stock markets rebounded on Thursday, March 5, after sharp losses earlier in the week, with Asian equities posting strong gains and European markets extending a modest recovery, while US stock futures signalled a mixed opening on Wall Street.

According to CNN, Asian indices climbed after a steep drop the previous day. South Korea’s Kospi surged 9.6%, a day after suffering a record 12% fall on Wednesday.

Thomas Mathews, head of Asia-Pacific market analysis at the consulting firm Capital Economics, said the sharp correction in Seoul earlier this week could be explained by excessive volatility and speculative enthusiasm in the market.

“Korean stocks have recently been rising amid excessive volatility, possibly speculative hype, and needed a pullback,” Mathews said on Thursday. “Indeed, earnings expectations were sky-high.”

Elsewhere in Asia, the rebound was more moderate after markets slipped slightly on Wednesday. European equities also moved higher, with the STOXX Europe 600 gaining 0.5%, continuing a recovery that began the previous day following losses earlier in the week.

In the United States, stock futures pointed to a mixed start to trading. Futures tied to the Dow Jones Industrial Average suggested the benchmark would open about 0.1% lower, while futures for the S&P 500 and the Nasdaq Composite were largely unchanged.

Analysts said markets remain highly reactive to geopolitical developments and economic news. In a note published on Thursday, analysts at Deutsche Bank said markets “remain very sensitive to news.”

The bank noted that oil prices fell on Wednesday after The New York Times reported that Iran had entered into indirect contact with the US to discuss possible negotiations aimed at ending the ongoing conflict.

Mohit Kumar, an economist at Jefferies, wrote in a note on Thursday that the report helped “set the tone for market gains.”

Despite the midweek dip linked to the news, oil prices still ended Wednesday higher overall. Brent crude closed the session at its highest level since January 2025. In early Thursday trading, Brent rose a further 2.4% to $83 per barrel.

The US benchmark, West Texas Intermediate, climbed 3% during morning trading.

By Tamilla Hasanova