At the closing, the Dow Jones index lost more than 450 points and decreased by 0.95 percent to 47,501.55 points.
The S&P 500 index decreased by 1.33 percent to 6,740 points and the Nasdaq index decreased by 1.59 percent to 22,387.68 points.
While the US and Israel’s attacks on Iran and Iran’s retaliation continued, a negative trend was observed in the stock markets due to the impact of weak employment data in the US.
While the news flow regarding the conflicts in the Middle East continues to be the focus of investors, US President Donald Trump, in his post on his social media account, stated that there will be no agreement with Iran other than “unconditional surrender”.
While traffic in the Strait of Hormuz, an important route for global trade, came to a halt due to the intensifying conflict in the region, the rise in oil prices continued due to supply concerns.
Qatar’s Energy Minister Saad bin Sharia al-Kabi’s statements in the international press that the Gulf countries could stop energy exports within weeks and that this could increase oil prices to 150 dollars per barrel also supported the upward movement of prices.
While the barrel price of Brent oil increased by more than 8 percent to 92.3 dollars as of 00:00 GMT, at the same time, the barrel of West Texas Intermediate (WTI) crude oil increased by more than 12 percent and reached 90.8 dollars at 90.8 dollars.
With these developments, the VIX Index, known as the “fear index” in the markets and showing the fluctuation in the S&P 500, increased to 29.5.
While there is concern that the increase in energy costs will fuel inflation, data released in the USA revealed that there is a loss of employment in the economy.
According to the data of the US Department of Labor, non-agricultural employment in the country decreased by 92 thousand people in February, contrary to the expectations for an increase, while the unemployment rate increased from 4.3 percent to 4.4 percent.
There was also a downward revision in the data on non-agricultural employment for January and December last year.
Analysts stated that the weakening of the labor market could be a supporting factor for an interest rate cut, but things could become difficult for the US Federal Reserve (Fed), considering the risk that this could lead to an increase in inflation if oil prices remain high for a long time.
While the statements of Fed officials were also being monitored, Fed Board Member Christopher Waller stated in an interview with Bloomberg television that he did not expect the war with Iran to have a permanent effect on inflation.
Stating that the increase in gasoline prices may initially create a price shock for consumers, Waller said, “When we think about the future of the policy, it is unlikely that this will lead to permanent inflation.” he said.
In an interview with CNBC television, San Francisco Fed President Mary Daly pointed out that weak employment data for February will make the already difficult decision-making environment for monetary policy even more difficult.
“Hopes that the labor market was stabilizing were perhaps over-exaggerated, and we need to monitor the labor market really closely,” Daly said. he said.
Boston Fed President Susan Collins, in a speech at an event she attended, stated that she did not see any urgency for additional adjustments in monetary policy, that she was looking for clear evidence that inflation was permanently decreasing towards the 2 percent target, and that this could only happen in the second half of the year.
Cleveland Fed President Beth Hammack reiterated her view that interest rates should be kept steady for a while longer, in a speech at a conference.
In his interview with CNBC television, Fed Board Member Stephen Miran stated that the weak employment data for February strengthened the central bank’s justification for reducing interest rates.
Stating that there are no inflation problems, Miran stated that the labor market can receive more support from monetary policy.
On the other hand, news that the American asset management company BlackRock limited withdrawals from one of its private credit funds due to increasing money outflows increased concerns in the markets and the company’s shares lost 7.1 percent of their value.
