A tumultuous week in financial markets left the S&P 500 in negative territory for 2026 as investors grappled with the inflationary impact of the Iran war and disappointing jobs data. The index fell 1.3 percent on Friday, bringing weekly losses to 2 percent and pushing the benchmark below its year-end 2025 level.

Oil prices surged nearly 30 percent over the week, with Brent crude settling above $92 a barrel, the biggest weekly jump since the 2020 pandemic. This spike has sent jet fuel costs soaring 58 percent since the conflict began, prompting United Airlines CEO Scott Kirby to warn of a 'meaningful' earnings impact and potential ticket price increases. United shares tumbled 13.4 percent this week.

Friday's jobs report showing a loss of 92,000 positions in February has created a dilemma for the Federal Reserve, which now faces conflicting pressures. While the Iran war argues for holding rates steady to combat inflation, labor market weakness bolsters the case for cuts. Morgan Stanley's Ellen Zentner described the Fed as 'between a rock and a hard place,' with investors now pricing in the next rate cut for September rather than October.