US Stocks Decline Amid Sharp Oil Price Surge and Weakening Job Market Conditions

US Stocks Close Down Amid Oil Price Spike and Weak Job Market

Market Overview

On Friday, the three main US stock indexes closed down due to a sudden setback in the US labor market and a 12% spike in US oil prices. The escalating conflict in the Middle East has led to a sharp increase in energy costs, threatening to box in the Federal Reserve and complicate its path to rate cuts.

Key Market Indicators

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• Dow Jones Industrial Average: fell 0.95% to 47,501.55 points, posting its steepest weekly percentage drop since early April 2025.
• S&P 500: lost 1.33% to 6,740.00 points and had its worst week since mid-October.
• Russell 2000: recorded its sharpest weekly fall since early August.
• Nasdaq Composite: slipped 1.59% to 22,387.68.

Oil Prices

US crude oil futures climbed more than 12% on Friday, reaching over $90 per barrel, while international Brent rose about 8.5% to $92 per barrel. The Cboe Volatility Index, a gauge of investor anxiety, jumped 5.74 points to 29.49, its highest close since April 2022.

Sector Performance

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• S&P 500 Banks Index: fell 2.03% due to higher input costs and pressure on corporate profits.
• Travel Stocks: lagged as fuel costs jumped, with the S&P Passenger Airlines Sub-Index dropping 4.07%.
• S&P Energy Stocks: rose 0.13% due to the prospect of stronger revenue.

Notable Stock Movements

• BlackRock: fell 7.1% after limiting withdrawals from a major private credit fund.
• Western Alliance: fell 8.4% after suing Jefferies for not making a payment for loans tied to bankrupt auto parts supplier First Brands Group.
• Marvell Technology: closed 18.4% higher after forecasting fiscal 2028 revenue above estimates.

Economic Indicators

• The unemployment rate increased to 4.4%.
• The Cboe Volatility Index, a gauge of investor anxiety, jumped 5.74 points to 29.49, its highest close since April 2022.