US sharemarkets fell on Friday, extending their weekly losses as a sharp surge in oil prices and weaker-than-expected labour market data unsettled investors. The Dow Jones Industrial Average dropped 453 points, or 0.95%, to close at 47,501.55 after being down nearly 950 points earlier in the session. The S&P 500 declined 1.33% to 6,740.02, while the Nasdaq Composite fell 1.59% to 22,387.68.
For the week, the Dow lost 3%, the S&P 500 fell 2%, and the Nasdaq shed 1.2%, reflecting rising concerns about the economic impact of escalating geopolitical tensions.
Oil surge and weak jobs data weigh on markets
Energy markets were the primary driver of volatility. West Texas Intermediate crude surged above US$90 per barrel and finished the week with a roughly 35% gain, the largest since oil futures trading began in 1983, as investors assessed the risk of supply disruptions from the US-Iran conflict.
The rise in oil prices heightened fears that inflation could accelerate again just as economic growth shows signs of weakening. February nonfarm payrolls fell by 92,000, well below expectations, while the unemployment rate edged up to 4.4%, adding to concerns that the labour market may be softening.
Cyclical stocks were among the hardest hit. Shares of Caterpillar declined more than 3%, while travel and leisure companies sensitive to fuel costs also came under pressure.
Australian market outlook
Australian shares are poised to fall sharply on Monday as rising oil prices and escalating tensions in the Middle East weigh on global sentiment. Futures on the S&P/ASX 200 indicate a decline of around 1.76% at the open.
The local market has already fallen about 3.8% since the conflict began, and investors remain focused on whether sustained high oil prices could reignite inflation pressures and slow global economic growth.
