Last week, U.S. equity markets experienced elevated volatility as investors reacted to geopolitical developments and key economic indicators.

The Cboe Volatility Index (VIX) rose about 12% to roughly 22.4, reflecting heightened risk sentiment. The escalation of the conflict involving Iran was the dominant driver, pushing Brent crude prices up approximately 23% and West Texas Intermediate crude up about 29%, marking their sharpest weekly gains since the 2020 pandemic period. Markets were also preparing for the February non-farm payrolls report, where economists expected job growth of around 59,000 with unemployment holding near 4.3%, reinforcing the view of a slowing but still stable U.S. labor market.

Looking ahead to next week, markets are expected to remain sensitive to geopolitical developments and incoming economic data. The ongoing conflict involving Iran, the United States, and Israel continues to influence energy commodity prices and investor sentiment. The economic calendar includes several labor and activity indicators such as the ISM manufacturing index, JOLTS job openings, the ADP private employment report, and the ISM services PMI. These releases will provide further insight into labor demand and economic momentum while investors also monitor the final phase of earnings season, including results from several technology and retail companies.

Given this economic backdrop, let us see how this impacts the performance of various investment strategies.