The S&P 500 lost 1.4%,the Nasdaq tumbled 1.6%, and the Dow fell 1% on Friday as geopolitical volatility and disappointing labor data triggered a broad reassessment of the American economic trajectory. This coordinated decline reflects deep investor anxiety over the persistent rise in WTI crude oil prices and the unexpected loss of 92K non-farm payroll jobs in February. President Trump's demand for unconditional Iranian surrender and warnings from regional energy ministers regarding production force majeure have combined to push energy costs to levels that threaten global manufacturing capacity. The resulting jump in unemployment to 4.4% reinforces fears of a stagflationary environment where rising input costs collide with cooling consumer demand. Investors moved quickly to reduce risk, leading to Blackrock (-7.2%) capping withdrawals for the first time from one of its private credit funds, as concerns regarding private credit exposure and broader economic stagnation took hold.
India's BSE Sensex fell further to close about 1.4% lower at 78,919 on Friday, after a rebound the prior session, pressured by sustained foreign outflows and ongoing global economic concerns linked to the Middle East crisis. The ongoing conflict has raised concerns of a wider energy supply shock, pushing crude prices higher, reviving inflation pressures, and clouding the global growth outlook. Eternal, ICICI Bank and Axis Bank were among the major laggards while defense company Bharat Electronics (1.8%) posted the biggest gains. Reliance Industries gained about 1.1%, following reports that discounted Russian crude could reduce feedstock costs and potentially boost the company’s refining margins. For the week, the index recorded a 2.9% decline.
