Stocks Tumble, Crude Tops $91 For First Time Since October 2023 – CF Industries Holdings (NYSE:CF)

U.S. equities fell sharply Friday as a weak jobs report and surging crude oil reignited stagflation fears.

President Donald Trump issued a stark ultimatum to Iran, demanding unconditional surrender and warning of devastating consequences should attacks on U.S. forces continue. Qatar’s energy minister warned oil could surge past $150 should the Strait of Hormuz fully close.

Iran responded with a missile strike targeting U.S. military positions in Bahrain and warned the European Union would become a “legitimate target” if it joined the conflict.

Energy markets reacted immediately.

Oil prices jumped to $91 a barrel, up 12% on the day, and reached the highest levels since October 2023. Crude has rallied nearly 35% for the week, set for the biggest weekly gain in the commodities’ trading history. Natural gas futures rose 6.1% to $3.19.

Economic data added another layer of concern for investors.

February nonfarm payrolls fell by 92,000, well below expectation of 59,000 growth, lifting the unemployment rate to 4.4%. The miss now places the Federal Reserve in a difficult position, as oil-driven inflation may prevent rate cuts even as the labor market softens.

Every major index declined, while energy stocks bucked the trend on the back of Iran-driven oil gains.

By 1:12 p.m. in New York, the S&P 500 fell 1% to 6,760 and the Dow Jones Industrial Average also dropped about 600 points, 1%, to 47,472.

The Nasdaq 100 declined 0.67% to 24,851 and the Russell 2000 dropped 2.42% to 2,522. The Cboe Volatility Index rose 13.77% to 27.02.

The Energy Select Sector SPDR Fund (NYSE:XLE) was the session’s only green sector, gaining 0.2%.