The U.S. stock market dropped sharply on Saturday as global oil prices surged, with the ongoing tensions involving Iran adding pressure to the energy market.
According to Bloomberg, the S&P 500 fell 1.3%, marking its biggest weekly loss since last October. At the same time, U.S. oil prices jumped above $90 per barrel, recording their largest weekly gain on record as the conflict pushed energy markets higher.
The situation was made worse by weak jobs data. The report showed an unexpected loss of 92,000 jobs, pushing the unemployment rate up to 4.4%. This has put the Federal Reserve in a tough position—having to balance rising inflation caused by higher energy prices while also dealing with a slowing labor market.
Bloomberg also noted that fears about the conflict spreading across the Middle East have made investors more cautious. As a result, shares of technology and chip companies declined, and the pressure also spread to cryptocurrencies, including Bitcoin.
