US stock indices slide after weak February jobs report

WASHINGTON: Stock indices in the US fell substantially after Friday’s jobs report, which showed the US unexpectedly lost jobs in February, The Wall Street Journal reported. The Nasdaq closed at 22,387.68, down 1.59 per cent.

On the employment report, February’s 92,000 lost jobs fell short of economists’ expected gain of about 50,000 jobs. The unemployment rate ticked up to 4.4 per cent from 4.3 per cent in January. Besides, stocks in Europe and Asia also dipped, weighed down by indications of prolonged West Asia conflict.

Meanwhile, crude oil prices shot up sharply, reportedly after the US President Donald Trump sought what he called “unconditional surrender” from Iran, intensifying worries about a prolonged conflict that could disrupt global energy supplies.

Crude Oil WTI Futures were 12.2 per cent up at USD 90.90 at the time of filing this report. It has seen its biggest weekly gain since April 2020, as per reports. Escalating tensions in Iran and the wider West Asia region have intensified concerns over global crude oil supplies, with experts warning of sustained volatility that could potentially impact the global energy sector.

Apurva Sheth, Head of Market Perspectives and Research, SAMCO Securities, said it seems that the ongoing conflict between the United States and Iran is likely to keep the prices elevated.

The Trump administration sought to rein in soaring oil prices by dialing back US sanctions on Moscow. The Treasury on Thursday issued a waiver allowing India to buy Russian oil stranded at sea, and separately allowed transactions with the German branch of Russia’s Rosneft state oil company, as per the WSJ report.

The war between the United States and Israel against Iran has the potential to be the largest oil supply disruption in history if oil flows via the narrow Strait of Hormuz remain low or come to a halt, said Jim Burkhard, Global Head of Crude Oil Research at S&P Global Energy.

“Initially, energy infrastructure had not been targeted by Iran, but that has changed with attacks on facilities in Saudi Arabia and Qatar. This adds a critical further dimension to the shock wave hitting oil and gas markets, according to a new S&P Global Energy analysis,” Jim Burkhard said. (ANI)