NEW YORK, March 7, 2026, 1:00 AM EST
The Nasdaq Composite closed last week in the red, dragged lower by a sharp selloff Friday after an oil shock stemming from the Middle East conflict and a surprise dip in U.S. payrolls. Growth stocks took the brunt of the hit. For the week, the tech-focused index shed 1.24% to finish at 22,387.68, slipping 1.59% on Friday alone. The S&P 500 dropped 2.02% over the week, while the Dow ended down 3.01%. 1
Investors are staring at slower job growth and higher energy costs—both hitting at once. The Federal Reserve faces a bind: shore up a cooling labor market or tamp down on inflation risks. “Both of our goals are risks now,” San Francisco Fed President Mary Daly said Friday. For tech stocks trading at steep valuations, that kind of squeeze tends to spook the crowd. 2
The VIX settled at 29.49 by Friday, marking its highest close since April 2022. The jump signals volatility’s reach isn’t just about a single session’s tumble in big tech names. 3
By Thursday, the tone was set. U.S. crude jumped 8.5%, landing near $81 a barrel. The Nasdaq edged down 0.26%. “Look at oil today, it tells you everything you need to know about why the stock market’s down,” said Michael Antonelli, market strategist at Baird Private Wealth Management. 4
Marvell Technology jumped almost 11% on Friday, boosted by an upbeat long-term outlook for its custom AI chips. The move came after Broadcom predicted over $100 billion in AI chip sales for next year, suggesting Nvidia isn’t the only name seeing strong demand. 5
This week’s slide was broken up midweek. The Nasdaq jumped 1.29% on Wednesday, after news broke that Iran might consider talks and the White House took steps to steady oil prices. Jim Awad at Clearstead Advisors called it a boost for sentiment, but emphasized that this optimism “will be tested over the coming weeks.” 6
Friday’s jobs data landed with a thud. Nonfarm payrolls in the U.S. dropped by 92,000 in February, defying forecasts that had pointed to a gain, while unemployment ticked up to 4.4%. “Whichever way you look at it,” said Olu Sonola, an economist at Fitch Ratings, “it’s bad news.” 7
The hit came as markets were still reeling from February’s drop. Late last month, both the Nasdaq and S&P 500 posted their biggest monthly slides since March 2025—investors had their nerves frayed by talk of AI disruption, tariffs, and ongoing geopolitical strains. 8
Things could shift fast from here. Michael Arone at State Street called oil a “good barometer” for risk assets, warning that $100 crude would “spook markets more.” Tech, which has taken a hit, might catch a bid if oil prices come down. But fresh U.S. inflation numbers next week or any escalation in the conflict could spell more trouble for the Nasdaq. 9
