US stocks fell sharply this week due to rising oil prices and weaker-than-expected jobs data. The Dow dropped 453 points, or 0.95%, as the S&P 500 lost 1.33% and the tech-heavy Nasdaq sank 1.59%. Oil prices surged 36% for US crude and 27% for Brent, driven by the conflict with Iran halting oil flow through the Strait of Hormuz.
President Donald Trump stated that there will be no deal with Iran except unconditional surrender. This led to concerns about a wider war in the Middle East. Bob McNally, president of Rapidan Energy Group, warned that investors are becoming increasingly vulnerable to turmoil in the region.
Higher oil and energy prices could ignite inflation, causing concern on Wall Street. The US economy lost 92,000 jobs in February and the unemployment rate ticked higher to 4.4%. The Bureau of Labor Statistics reported a weaker-than-expected jobs report, which has led to a mix of stagflationary risks.
Bonds fluctuated as investors sold them due to rising energy prices and renewed tariff uncertainty. The 10-year Treasury yield surged this week, posting its biggest weekly gain since April. The US dollar index also moved lower after the weak jobs report, which may have put the Federal Reserve between a rock and a hard place.
Source: https://edition.cnn.com/2026/03/06/investing/us-stocks-oil-iran