Payrolls fall as traders reprice growth outlook
US stocks slid sharply on Friday after the latest monthly employment report pointed to a sudden deterioration in hiring, adding to investor unease already elevated by the Middle East conflict. The market move extended a volatile week and pushed major indexes further into the red as traders reassessed the balance between slowing growth and renewed inflation pressure.
The Dow Jones Industrial Average dropped more than 1.4%, or close to 700 points. The Nasdaq Composite fell roughly 1.2%, while the S and P 500 declined about 1.3%. The losses followed another unsettled session on Thursday and left the market positioned for a weaker close to the week.
February’s jobs report delivered the main catalyst. Nonfarm payrolls unexpectedly fell by 92,000, missing forecasts that called for an increase of 55,000. The unemployment rate rose to 4.4%, reinforcing concerns that the labor market may be losing momentum at a time when financial conditions are being reshaped by geopolitical risk.
Energy shock risk returns as crude jumps into the 90s
Equity losses deepened as oil prices surged on new warnings about potential supply disruptions in the Gulf. West Texas Intermediate futures climbed more than 13% to trade above $91 per barrel, while Brent rose about 9% to move above $93. Both contracts were headed for their largest weekly gains in five years, according to the figures cited, with tanker traffic through the Strait of Hormuz remaining close to a standstill.
The move in crude followed comments from Qatar’s energy minister, who said the war involving Iran could force Gulf exporters to shut off production within days and warned prices could reach $150 per barrel. Separately, a report said Kuwait has begun cutting production, adding to the perception that the conflict is now directly influencing regional export capacity.
The jump in oil complicated efforts by President Donald Trump to curb the rally. The report noted the US awarded India a temporary waiver to buy Russian crude, but the latest price gains challenged that approach as markets focused on the risk that energy supply constraints persist or worsen.
Inflation fears rise as gasoline costs climb
Investors also weighed the inflation implications of higher crude, especially as US gasoline prices at the pump reached their most expensive level since 2024, according to the summary provided. A sustained oil shock would threaten to reheat broader price pressures, complicating the outlook for monetary policy and household purchasing power.
Friday’s session reflected that tension. The weaker jobs data suggested cooling demand, while the oil spike implied higher input costs for businesses and consumers. That combination can be uncomfortable for risk assets because it raises the possibility of slower growth without a clean disinflation path.
Weekly performance turns negative as volatility persists
After a week of abrupt moves, the major indexes were on track for weekly declines. The report said the S and P 500 and the Nasdaq Composite were headed lower for the week, while the Dow was down more than 3% and had slipped into negative territory for 2026.
Geopolitics remained a central driver. Trump said Friday that the only path to resolution in Iran is “unconditional surrender,” a stance that reinforced market expectations that the conflict could intensify or extend. With energy markets tightly linked to shipping conditions in Hormuz, traders continued to treat crude prices as a real-time gauge of escalation risk, feeding directly into equity volatility.
