Stocks moved sharply lower during trading on Friday, adding to the losses posted in the previous session. With the steep losses on the day, the Dow and the Nasdaq dropped to their lowest closing levels in over three months and the S&P 500 hit a two-month closing low.
The major averages all finished the day firmly in negative territory. The Nasdaq plunged 361.31 points or 1.6 percent to 22,387.68, the S&P 500 (SPI:SP500) tumbled 90.69 points or 1.3 percent to 6,740.02 and the Dow slumped 453.19 points or 1.0 percent to 47,501.55.
The sell-off on Wall Street came amid an extended surge by the price of crude oil, with U.S. crude oil futures soaring above $90 a barrel.
Crude oil has skyrocketed over the past week as the U.S.-Iran conflict spreads across the Middle East, leading to concerns about a global energy crisis.
As the Middle East conflict entered its seventh day, Israel intensified air strikes on Iran, while the U.S. said its attacks on Iran are going to “surge dramatically.”
President Donald Trump said in a post on Truth Social that there would be no deal with Iran except “unconditional surrender.”
“After that, and the selection of a GREAT & ACCEPTABLE Leader(s), we, and many of our wonderful and very brave allies and partners, will work tirelessly to bring Iran back from the brink of destruction, making it economically bigger, better, and stronger than ever before,” Trump said.
Trump previously said the U.S. wants to be involved in the process of choosing the person who is going to lead Iran into the future.
Negative sentiment was also generated in reaction to a closely watched Labor Department report showing U.S. unemployment unexpectedly decreased in the month of February.
The report said non-farm payroll employment slumped by 92,000 jobs in February after jumping by a downwardly revised 126,000 jobs in January.
Economists had expected employment to increase by 60,000 jobs compared to the addition of 130,000 jobs originally reported for the previous month.
The Labor Department also said the unemployment rate ticked up to 4.4 percent in February from 4.3 percent in January, in line with economist estimates.
Sector News
Semiconductor stocks moved sharply lower over the course of the session, dragging the Philadelphia Semiconductor Index down by 3.9 percent to its lowest closing level in almost two months.
Substantial weakness was also visible among transportation stocks, as reflected by the 3.5 percent plunge by the Dow Jones Transportation average.
Steel, networking, financial and housing stocks also saw significant weakness, while oil producer stocks were among the few groups to buck the downtrend amid the spike by the price of crude oil.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance on Friday. Hong Kong’s Hang Seng Index jumped by 1.7 percent and Japan’s Nikkei 225 Index climbed by 0.6 percent, while Australia’s S&P/ASX 200 Index slid by 1.0 percent.
Meanwhile, the major European markets have all moved to the downside on the day. While the U.K.’s FTSE 100 Index slumped by 1.2 percent, the German DAX Index declined by 0.9 percent and the French CAC 40 Index fell by 0.7 percent.
In the bond market, treasuries saw considerable volatility over the course of the session before closing modestly higher. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, dipped 1.3 basis points to 4.133 percent.
Looking Ahead
Next week’s trading is likely to be driven by reaction to the latest developments in the Middle East, while reports on consumer prices, durable goods orders and consumer sentiment may also attract attention.
SOURCE: RTTNEWS