U.S. stock markets moved lower on Friday, although they recovered slightly from earlier losses, as investors reacted to weaker-than-expected labor market data and sharply rising oil prices.
At 11:25 ET (16:25 GMT), the benchmark S&P 500 declined 1.1% to 6,752.81 points after earlier falling as much as 1.7%. The technology-focused Nasdaq Composite dropped 1% to 22,535.10 points, while the Dow Jones Industrial Average fell 1.2% to 47,387.59 points after earlier sliding nearly 2%.
Oil Prices and Weak Jobs Data Weigh on Markets
Market sentiment deteriorated as investors faced a combination of rising oil prices and disappointing labor market figures. Steve Sosnick, chief strategist at Interactive Brokers, said the news flow had been particularly negative due to higher energy costs and weaker employment data.
Despite the declines, some traders stepped in to buy stocks after the S&P 500 tested key support levels earlier in the session. According to Sosnick, many investors still view the geopolitical tensions involving Iran as temporary and continue to buy market dips.
However, uncertainty remains about whether this optimism will persist, especially as traders assess the risks of holding positions over the weekend amid ongoing geopolitical tensions.
Oil Surge Linked to Middle East Conflict
Stocks had already weakened in the previous session as oil prices surged amid fears of supply disruptions in the Middle East. Concerns have centered on potential disruptions to oil flows through the Strait of Hormuz, a critical maritime passage that carries roughly 20% of global oil supply.
Oil prices have climbed sharply since the United States and Israel launched coordinated strikes on Iran earlier in the week, triggering broader conflict across the region.
Rising energy prices have also increased inflation concerns. According to data from AAA cited by Reuters, average gasoline prices in the United States have jumped by 27 cents to around $3.25 per gallon since the conflict began.
Higher fuel costs can reduce corporate profits and consumer spending while complicating the efforts of the Federal Reserve to control inflation.
The conflict shows little sign of easing. U.S. Defense Secretary Pete Hegseth recently warned that the scale of military operations over Iran could increase significantly.
Meanwhile, Israel announced a broad wave of strikes targeting infrastructure in Tehran.
U.S. President Donald Trump has also suggested that Washington may play a role in shaping Iran’s future leadership following recent airstrikes that killed Supreme Leader Ayatollah Ali Khamenei.
Weak Payrolls Data Adds to Market Uncertainty
Investor attention on Friday also focused on the latest U.S. employment report. Data from the Bureau of Labor Statistics showed that nonfarm payrolls unexpectedly declined by 92,000 jobs in February.
Economists had expected payrolls to increase by around 58,000 jobs. The unemployment rate also rose to 4.4%.
The weaker labor data has complicated the economic outlook and raised questions about the future path of monetary policy. Some investors believe the slowdown could increase the likelihood of interest rate cuts later this year.
According to the CME Group FedWatch tool, traders have increased their expectations for potential rate reductions following the disappointing jobs report.
Corporate News: AI Spending Boosts Marvell Outlook
In corporate developments, Marvell Technology raised its full-year revenue outlook, supported by strong demand from artificial intelligence data centers.
Major technology companies such as Amazon and Microsoft continue to invest heavily in building infrastructure for AI applications, benefiting chip designers like Marvell.
Elsewhere, clothing retailer Gap issued weaker-than-expected guidance for fiscal 2026 due to tariff-related pressures. Meanwhile, Costco reported stronger quarterly revenue and profit, with membership fees reaching $1.36 billion, up 13.6% from the previous year.
Oil Prices Head for Major Weekly Gains
Oil markets also remained volatile. Brent crude futures climbed 6.7% to $91.15 per barrel, while U.S. West Texas Intermediate crude jumped 10% to $89.07.
Since the conflict began earlier in the week, Brent crude has risen roughly 25%, while WTI has surged about 33%.
In an effort to ease supply concerns, the United States announced it would temporarily allow the sale of Russian oil to India for a 30-day period.
However, fears remain that the conflict could disrupt shipping through the Strait of Hormuz, which would significantly impact global oil supplies.
