Dow Plunges 700 Points As Weak Jobs Data, Escalating War Rattle Markets: Economist Peter Schiff Says ‘US Economy Will Be Much Weaker’

• Nonfarm payrolls decreased by 92,000 during the month.
• Health care employment fell by about 28,000 jobs during the month, largely due to strike activity.
• Economist Peter Schiff said that several major indicators point to growing financial strain and weaker economic performance.

U.S. equities declined on Friday morning as the U.S. labor market weakened in February, with the nonfarm payrolls decreasing by 92,000. The Dow Jones Industrial Average tumbled over 700 points at the time of writing, the S&P 500 index declined over 1%, and the Nasdaq Composite Index fell 0.8%. 

According to data from the U.S. Bureau of Labor Statistics, the unemployment rate remained at 4.4% in February, with approximately 7.6 million Americans counted as unemployed. Job losses across several sectors contributed to the decline in payroll.

Expert Reaction 

Economist Peter Schiff, in a post on the X platform, issued a stark assessment of the U.S. economy, stating that several major indicators point to growing financial strain and weaker economic performance.

Schiff said the nation’s employment situation has deteriorated significantly, while multiple financial markets have declined. He also warned that rising energy prices and geopolitical tensions could place additional pressure on the economy.

“The U.S. economy will be much weaker and inflation much higher under Trump than they were under Biden.”

-Peter Schiff, Economist. 

In another post, Gary Black, managing partner of Future Fund, highlighted that the contraction in employment marked one of the most significant monthly job declines since the height of the COVID-19 pandemic.

Industry Trends Behind Job Losses

Health care employment fell by about 28,000 jobs during the month, largely due to strike activity that reduced staffing in physician offices. The information sector also continued its gradual contraction, shedding roughly 11,000 jobs in February. Federal government payrolls declined by another 10,000 positions, extending a longer-term reduction in federal employment since its peak in late 2024.

The labor force participation rate stayed at 62%, while the employment-population ratio held at 59.3%.

Adding to the drag was the conflict in the Middle East, which reached its seventh day. U.S. President Donald Trump said in a Truth Social post on Friday that the United States would only accept Iran’s “unconditional surrender” and no other agreement. He added that the U.S. has been evacuating people from various countries in the Middle East. 

At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, was down 0.8%; the Invesco QQQ Trust ETF (QQQ) fell 0.7%; and the SPDR Dow Jones Industrial Average ETF Trust (DIA) declined 1.06%. Retail sentiment on Stocktwits around the S&P 500 ETF was in the ‘bearish’ territory.

Also See: Why Did DAWN Skyrocket Over 65% Pre-Market Today?

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