United States stocks extended their losses on Friday (Saturday AEDT) as oil prices surged above US$90 per barrel and investors reacted to unexpectedly weak labour market data, capping a volatile week on Wall Street.
The Dow Jones Industrial Average dropped 453.2 points, or 1%, to close at 47,501.6. The S&P 500 declined 90.7 points, or 1.3%, to 6,740.0, while the Nasdaq Composite fell 361.3 points, or 1.6%, to finish at 22,387.68.
Energy markets were a major focus for investors as West Texas Intermediate crude climbed above $90 per barrel. The benchmark oil contract ended the week with a 35.6% gain — the largest weekly increase since oil futures trading began in 1983, while Brent crude futures also surged 27.2%.
Oil prices accelerated higher after United States President Donald Trump said in a post on Truth Social that there would be no agreement to end the conflict without an “unconditional surrender” from Iran.
Rising fuel costs weighed on several cyclical companies. Shares of cruise operator Royal Caribbean fell 1.8%, bringing weekly declines to 10.6% for the week amid concerns over higher fuel expenses.
Asset manager BlackRock was among the session’s biggest losers, falling 7.7% after deciding to limit withdrawals from one of its major private credit funds.
Banking stocks also came under pressure. Western Alliance Bancorp dropped 8.5% after filing a lawsuit against investment bank Jefferies, alleging it failed to make a payment related to loans tied to the bankrupt auto parts supplier First Brands Group.
Jefferies shares fell sharply, losing 13.5% during the session.
Despite the broader market weakness, semiconductor firm Marvell Technology rallied strongly. The stock surged 18.4% after the company forecast fiscal 2028 revenue above market estimates.
Investor sentiment was also weighed down by disappointing U.S. labour market data released during the session. The Bureau of Labor Statistics reported that nonfarm payrolls fell by 92,000 in February, sharply contrasting with the downwardly revised January increase of 126,000 and falling well short of the 50,000 gain markets had expected.
The unemployment rate also edged higher, rising to 4.4% from 4.3% in the previous month.
ANZ analysts commented in a note to clients: "The 92k fall in nonfarm payrolls contradicts guidance that the U.S. labour market is stabilising. It is also much weaker than previously assumed. Owing to revisions, payrolls have been negative in five of the last nine months and the three-month average at 6k shows the labour market is at best at a standstill.
"Unemployment is being held down by low or no immigration and the baby boomers rolling out of the labour force. Strong productivity growth means firms need to hire fewer people. For the jobs market, monetary policy is very restrictive and the FOMC cannot ignore that indefinitely.
"Our assessment is that, excluding tariff effects, underlying disinflation is now established. Supercore CPI fell to 2.7% y/y in January, down from 4.0% a year earlier. The February CPI data will be watched to see if the pre-Middle East conflict disinflation extended."
For the week, U.S. equities finished firmly lower as geopolitical risks and economic uncertainty unsettled investors. The Dow Jones Industrial Average declined 3% for the week, while the S&P 500 fell 2% and the Nasdaq Composite recorded a smaller weekly drop of 1.2%.
On the bond markets, the yield on the 10-year U.S. Treasury falling 0.1% to 4.138%, while the two-year yield dropped 0.8% to 3.556%.
