Dow Drops More Than 600 Points as Oil Surges Past $90 and Weak Jobs Report Rattles Markets

U.S. stocks fell sharply Friday as rising oil prices and disappointing jobs data fueled concerns about the economy and global instability.

The Dow Jones Industrial Average dropped more than 600 points during trading, after briefly falling nearly 950 points earlier in the day. The S&P 500 and Nasdaq also declined, while Wall Street’s volatility index jumped as investors grew increasingly nervous.

Oil prices surged to their highest level in more than two years amid disruptions tied to the conflict in the Middle East. U.S. crude climbed above $90 per barrel, while Brent crude — the international benchmark — approached $93.

Energy prices have jumped dramatically this week as fighting involving Iran has disrupted oil shipments through the Strait of Hormuz, one of the world’s most critical energy shipping routes. Analysts say roughly 20 percent of global oil exports move through the narrow waterway.

The surge in oil prices has raised fears of higher inflation, which could complicate decisions for the Federal Reserve as it weighs future interest rate moves.

At the same time, new economic data added to investor anxiety. The latest report from the Bureau of Labor Statistics showed the U.S. economy lost 92,000 jobs in February. The unemployment rate also ticked up to 4.4 percent.

Economists say the combination of rising energy costs and weakening job growth is a troubling mix for financial markets.

Some analysts warn that higher oil prices, combined with economic uncertainty, could push markets into a more volatile period if tensions in the Middle East continue to escalate.

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