Global markets experienced a significant downturn as fears of escalating oil prices and concerning U.S. jobs data rattled investors. U.S. futures and European stocks slid sharply, with major indices like the S&P 500 and Nasdaq seeing notable drops. The MSCI all-world stock index faced its largest weekly fall since March 2025.
The surge in oil prices, driven by geopolitical tensions, pushed U.S. crude to over $86 a barrel and Brent crude to nearly $90, its highest in two years. A stark warning from Qatar's energy minister about potential widespread economic damage from prolonged conflict exacerbated market anxieties.
Adding to the concern, U.S. non-farm payrolls unexpectedly fell by 92,000 in February, a significant miss from economist expectations. This data led to a rise in the U.S. unemployment rate to 4.4% and prompted a reassessment of Federal Reserve interest rate cut projections.
In Europe, the economic outlook shifted, with traders now considering the possibility of interest rate hikes by the European Central Bank this year. U.S. Treasury yields saw a dip following the jobs report, though the dollar index remained on track for a weekly increase.