US Indices Decline Amid Middle East Conflict and Job Losses

Wall Street Extends Losses as Middle East Conflict and Weak Jobs Data Weigh on Markets​

Wall Street remained under pressure on Friday as major US indices declined further, capping the worst weekly sell-off since October. Escalating tensions in the Middle East and a surprise contraction in US employment data heightened investor concerns about rising oil prices, persistent inflation, and slowing economic growth.

Major US Indices Close Lower​

The S&P 500 Index recorded its largest single-day decline in nearly a month on Friday, dropping 1.3%. For the week, the benchmark index finished 2% lower.

The Dow Jones Industrial Average also moved lower, falling 1%, while the Nasdaq 100 Index, which carries a heavy weighting toward technology stocks, declined 1.5% during the session.

Oil Price Surge Adds to Market Anxiety​

Market sentiment was further shaken as the US and Israeli conflict with Iran pushed oil futures to levels not seen since 2023. The surge in energy prices fueled concerns about inflationary pressure at a time when investors are already grappling with signs of economic slowdown.

Despite expectations that the Federal Reserve may consider rate cuts following weak economic indicators, investor confidence remained fragile throughout the trading week.

Unexpected Job Losses Trigger Growth Concerns​

A US government report revealed that non-farm payrolls declined by 92,000 jobs in February, sharply diverging from economists' expectations of a 59,000 job increase.

The February drop followed a downwardly revised increase of 126,000 jobs in January. Meanwhile, the unemployment rate rose to 4.4% in February from 4.3% in January, adding to worries about the health of the US labor market.

The unexpected employment contraction triggered volatile trading in currencies and US Treasury markets, reflecting shifting expectations around economic growth and monetary policy.

Geopolitical Tensions Escalate​

The geopolitical backdrop also intensified during the week. US President Donald Trump called for Iran's "unconditional surrender", while Israel continued military strikes in Iran and Lebanon. In response, Iran launched missiles toward Israel and Gulf states that host US military bases.

The conflict has added significant uncertainty to global markets, with investors closely watching for potential disruptions in energy supply and broader economic impacts.

Markets Navigate a Turbulent Week​

Prior to the escalation of military activity a week earlier, the US stock market had been largely flat for the year. However, the intensifying conflict contributed to a turbulent week in financial markets.

At the same time, underlying concerns remain in the background, including the potential disruption in private finance and the growing impact of artificial intelligence on industries. While the conflict has temporarily shifted attention away from these issues, investors continue to monitor them as longer-term risks to market stability.