Stocks Slide as Oil Surge and Weak Jobs Data Shake Markets- U.S. stocks tumbled on Friday, extending their losses for the week as investors reacted to rising oil prices and unexpectedly weak employment data. Concerns about the economic impact of escalating tensions in the Middle East added further pressure on financial markets.
The Dow Jones Industrial Average dropped about 903 points, or 1.9%, during the session. The S&P 500 and the tech-heavy Nasdaq Composite each declined roughly 1.6% as investors moved away from riskier assets.
The market downturn came after fresh labour market data showed a sharp decline in hiring. According to the U.S. Department of Labor, nonfarm payrolls fell by 92,000 in February. The figure was far weaker than economists had expected and marked a stark reversal from January, when payrolls had risen by 126,000 after revisions.
Analysts surveyed by Dow Jones had predicted the economy would add around 50,000 jobs during the month. Instead, the report indicated a cooling labour market. The unemployment rate also edged higher, climbing to 4.4% from 4.3% in the previous month.
Oil surge rattles investors
At the same time, energy markets saw a sharp spike in crude prices, adding to inflation concerns and weighing on investor sentiment. Futures for West Texas Intermediate rose above $89 per barrel, while Brent Crude—the global oil benchmark—surpassed $90.
The rally in oil prices reflects growing fears that the conflict between the United States and Iran could disrupt global energy supplies. Investors are particularly focused on potential disruptions in the Gulf region, which plays a critical role in global oil production and shipping.
Oil prices spiked further after comments from Donald Trump, who said on the social media platform Truth Social that there would be no agreement to end the conflict without an “unconditional surrender” from Iran.
Adding to market anxiety, the energy minister of Qatar told the Financial Times that Gulf energy producers might soon invoke force majeure, a legal measure that would allow them to suspend production or shipments due to extraordinary circumstances. Such a move could potentially drive oil prices to as high as $150 per barrel.
The minister warned that a prolonged conflict could have far-reaching economic consequences, including higher global energy prices, supply shortages, and disruptions across manufacturing supply chains.
Companies feel the pressure
The rise in energy prices and growing geopolitical risks have already begun to weigh on several sectors.
Shares of cruise operator Royal Caribbean fell about 4% on Friday, continuing a difficult week in which the company’s stock has dropped roughly 13% as investors worry about rising fuel costs.
Industrial giant Caterpillar also declined around 3%, while retail giants Walmart and Costco slipped slightly amid concerns that higher gasoline prices could squeeze consumer spending.
Markets shift into cautious mode
Investment strategists say the combination of geopolitical tension, rising energy costs and disappointing economic data has pushed markets into a cautious stance.
Angelo Kourkafas, senior global investment strategist at Edward Jones, said investors are increasingly worried about how long the conflict might last and whether it could significantly disrupt global energy supply.
However, Kourkafas noted that structural changes in the U.S. economy have reduced its vulnerability to oil shocks compared with previous decades. Since the country has been a net exporter of oil since 2019 and relies less heavily on energy-intensive industries, oil prices would likely need to remain above $100 for a prolonged period before causing serious economic damage.
Weekly losses mount
Despite that reassurance, the major stock indexes are still on track for notable weekly declines. The S&P 500 is heading toward a drop of more than 2% for the week, while the Dow Jones Industrial Average has fallen nearly 3%. The Nasdaq Composite is also set to end the week lower, with losses exceeding 1%.
With oil markets volatile and economic data raising fresh questions about growth, investors are likely to remain cautious in the days ahead.
