Stocks fell Friday, adding to their weekly declines, as oil prices spiked and traders reacted to an unexpected drop in new U.S. jobs data.
The Dow Jones Industrial Average lost 673 points, or 1.4%. The S&P 500 and Nasdaq Composite were down 1.2% and 1.4%, respectively.
BATL up 30%; INDO up 22%; Marvell up 12%; Samsara up 10%; Gap down 11%
Nonfarm payrolls fell by 92,000 in February, a sharp contrast from the downwardly revised January gain of 126,000 and far below the growth of 50,000 that economists polled by Dow Jones expected for the month. The unemployment rate also rose to 4.4% from 4.3%.
West Texas Intermediate futures broke above $87 per barrel. International Brent crude traded above $90 per barrel as investors weighed the impact of the U.S.-Iran war on global energy supply. The gains swelled after President Donald Trump said in a Truth Social post that there won’t be a deal to end the U.S.-Iran war without an “unconditional surrender” from the Middle Eastern country.
Qatar’s energy minister told The Financial Times that Gulf energy producers may need to call force majeure in the coming days, shutting down production in a move that could send oil to $150 a barrel. The conflict in the Middle East could “bring down the economies of the world,” he warned.
“If this war continues for a few weeks, GDP growth around the world will be impacted,” he said. “Everybody’s energy price is going to go higher. There will be shortages of some products and there will be a chain reaction of factories that cannot supply.”
Shares of Royal Caribbean, which has fallen more than 9% this week amid increasing fuel costs, fell again on Friday, dropping more than 2% in the premarket. Caterpillar shares, which have also suffered this week, were also down more than 2%. Retailers Walmart and Costco were marginally lower on fears that higher gas prices would hit consumers.
The recent rise in oil prices weighed on stocks during Thursday’s trading session as well. The Dow lost nearly 785 points, or 1.6%, putting the index on track for its second negative week in a row and its worst week since last October. The S&P 500 fell about 0.6%, while the Nasdaq Composite dipped nearly 0.3%.
