US stocks slumped to end a volatile week, with soaring oil prices and the spectre of energy supply shocks from the war in West Asia fanning inflation fears, and a surprise decline in US jobs stoking concerns about growth.
Qatar’s energy minister warned that the conflictwill likely force Gulf nations to halt energy exports, which would potentially push oil prices to $150 a barrel. US crude oil futures rose to $88 a barrel and stocks, which have seen their correlation to oil rise sharply, dropped.
The Cboe VIX Index, also known as Wall Street’s chief fear gauge, reached 28 after US President Donald Trump ruled out a deal to end the war, saying he wants Iran’s “unconditional surrender.” The comments followed a disappointing jobs report, in which the economy unexpectedly shed 92,000 positions and unemployment rate ticked higher.
The S&P 500 Index pared losses to 1 per cent at 12.01 pm in New York, as it tested a resistance level on the way down and four stocks in the benchmark dropped for every one that gained.
Nasdaq 100 Index fell 0.7 per cent, while the Dow Jones Industrial Average tumbled 1.1 per cent.
