Mar. 6 at 6:45 PM
Fears of stagflation—a mix of weak growth and rising prices—are resurfacing in markets after a disappointing U.S. jobs report and a sharp rise in oil prices.
The U.S. economy lost 92,000 jobs in February and the unemployment rate rose to 4.4%, signaling slowing growth. At the same time, Brent crude climbed above
$90 a barrel as tensions in the Middle East disrupted shipping through the Strait of Hormuz, raising inflation concerns.
The combination has pressured stocks and bonds while pushing the Cboe Volatility Index to its highest level in nearly a year. For the week, the S&P 500 fell about 1.9%, the Nasdaq Composite dropped 0.9%, and the Dow Jones Industrial Average declined 3.4%.
Analysts warn that prolonged conflict and high energy prices could increase stagflation risks, potentially limiting the Federal Reserve’s ability to respond if inflation rises while the labor market weakens.
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