U.S. stocks drop amid weak jobs data

U.S. stocks extended losses on Friday as an unexpectedly weak employment report and surging oil prices tied to the ongoing Middle East conflict heavily weighed on investor sentiment.

The Dow Jones Industrial Average fell 0.95 percent to 47,501.55. The S and P 500 sank 1.33 percent to 6,740.02. The Nasdaq Composite Index shed 1.59 percent to 22,387.68.

Nine of the 11 primary S and P 500 sectors ended in the red. The consumer discretionary and materials sectors led the laggards, dropping 1.96 percent and 1.89 percent, respectively. Consumer staples and energy managed slight gains, advancing 0.29 percent and 0.13 percent, respectively.

The February jobs report dealt a blow to market confidence, revealing that non-farm payrolls unexpectedly contracted by 92,000, widely missing market expectations of a 55,000-job addition. Consequently, the national unemployment rate rose to 4.4 percent.

While the weak data quashed notions of a stabilizing labor market, analysts suggested the Federal Reserve is unlikely to cut interest rates this month because the energy price shock poses a significant risk of reigniting inflation.

San Francisco Federal Reserve President Mary Daly noted in a media interview that the report commands attention, acknowledging that the labor market may be weaker than previously observed.

Global oil prices surpassed 90 U.S. dollars per barrel on Friday. Tanker traffic in the critical Strait of Hormuz has slowed to a near-standstill, raising concerns that Gulf exporters may soon be forced to halt production due to depleted storage capacity.

The broader market sell-off dragged down major technology shares, with the "Magnificent Seven" closing mostly lower. In earnings news, Marvell Technology soared 18.35 percent to pace the Nasdaq, while Gap dropped 14.41 percent.

Financial equities also faced pressure with BlackRock down 7.17 percent, marking its worst trading session since April 4. The steep decline followed the investment management firm's unprecedented decision to cap client withdrawals from one of its private credit funds, signaling potential growing stress within the broader credit markets.

The U.S. dollar weakened in late trading on Friday.

The dollar index, which measures the greenback against six major peers, dropped 0.34 percent to 98.982 at 15:00 (2000 GMT).

In late New York trading, the euro rose to 1.1606 dollars from 1.1583 dollars in the previous session, and the British pound added to 1.34 dollars from 1.3328 U.S. dollars in the previous session.

The U.S. dollar bought 157.74 Japanese yen, lower than 157.77 Japanese yen in the previous session. The U.S. dollar decreased to 0.777 Swiss francs from 0.7827 Swiss francs, and it declined to 1.3596 Canadian dollars from 1.3697 Canadian dollars. The U.S. dollar dropped to 9.1855 Swedish Kronor from 9.2657 Swedish Kronor.