Oil shot to its highest price since 2023 and sent U. S. indexes, including the Dow Jones Industrial Average, sharply lower, a move that capped Wall Street’s worst week since October. Friday at 10: 00 a. m. ET, dow jones stock markets were pressured after a weak U. S. jobs update and surging oil, a combination that heightened stagflation concerns for investors.
Dow Jones Stock Markets Fall After 945-Point Intraday Slide
The Dow Jones Industrial Average plunged as many as 945 points intraday before finishing with a loss of 453 points, or 0. 9%. The S&P 500 dropped 1. 3% after a report showed U. S. employers cut more jobs last month than they created, and the Nasdaq composite sank 1. 6%, leaving major indexes with their worst weekly performance since October.
Brent Crude Reaches $92. 69; U. S. Crude Tops $90. 90
Brent crude leaped 8. 5% to settle at $92. 69 per barrel and briefly rose above $94, marking its highest level since September 2023. A barrel of benchmark U. S. crude jumped 12. 2% to $90. 90, breaching the $90 mark for the first time since 2023. Oil has surged from near $70 late last week as the Iran war widened to areas critical for production and transport; roughly a fifth of the world’s oil typically sails through the Strait of Hormuz, a key chokepoint for supplies.
Weak U. S. Job Report and Retail Data Weigh on Markets
A government report showed U. S. employers cut more jobs last month than they added, and a separate report found that U. S. retailers earned less in January than economists expected. Brian Jacobsen, chief economic strategist at Annex Wealth Management, said, “You can’t sugarcoat this report. A negative payrolls number combined with a big jump in oil prices will have traders worrying about stagflation risks. ” The combination of a slowing job market and rising energy costs presents a difficult trade-off for policymakers.
Policymakers cut the main interest rate several times last year and had indicated more cuts were expected this year, but spiking oil prices are pushing inflation higher and could complicate the path for future rate decisions. If oil keeps rising, inflation pressures may offset the case for easier policy even as growth softens.
Market participants are watching energy flows and economic releases closely for signals that could stabilize prices and equities. More details from government energy briefings and upcoming economic updates are expected Friday at 10: 00 a. m. ET.
