US stocks close down as oil spikes 12%, job market weakens

March 7, 2026 - 05:12

U.S. stock markets closed sharply lower on Friday, pressured by a dual threat of soaring energy prices and signs of a softening job market. The Dow Jones Industrial Average fell nearly 1%, while the S&P 500 dropped 1.3% for its worst weekly decline since October. The Nasdaq Composite lost approximately 1.6%.

The sell-off followed a weaker-than-expected payrolls report, intensifying concerns about economic cooling. Simultaneously, escalating Middle East tensions triggered a dramatic spike in oil prices, with U.S. crude futures surging over 12% to surpass $90 per barrel. This combination presents a complex challenge for the Federal Reserve as it deliberates on future interest rate policy.

Despite the declines, some market observers noted a lack of panic among investors. "We're seeing a relatively small pullback given the size and scale of geopolitical tensions," said Alexander Morris, CEO of F/m Investments. He characterized the movement as long-term investors holding steady rather than a fear-driven exodus.

Several individual stocks experienced significant moves. BlackRock shares fell more than 7% after the asset manager limited withdrawals from a major debt fund. Western Alliance stock dropped about 8.5% following a lawsuit against Jefferies, whose own shares plunged over 13%. In a bright spot, Marvell Technology shares jumped more than 18% after the chipmaker issued an optimistic long-term revenue forecast.