U.S. stocks were lower on Thursday as the interim focus turned to the economy and the monthly jobs report. Meanwhile, there were also concerns about the conflict in the Middle East.
The S&P 500 (^GSPC) was down 0.2%, and the Dow Jones Industrial Average (^DJI) was down about 0.3%. The technology-heavy Nasdaq Composite Index (^IXIC) fell about 0.4%. All three gauges closed slightly above their flat lines on Wednesday.
The market, which had been unstable due to heightened tensions in the Middle East that led to a sharp rise in oil prices, has regained some calm. Israel has yet to launch its promised retaliation for Tuesday’s Iranian missile attack, despite efforts by Western and regional leaders to stabilize the situation.
Investors are bracing for the highly anticipated September jobs report on Friday after a sudden rise in private employment along with signs that the labor market is easing.
Investors received more signs of a general cooling in the labor market Thursday. Weekly unemployment claims increased slightly compared to the previous week. Meanwhile, planned layoffs in the U.S. have fallen from a five-month high, according to a report from Challenger, Gray and Christmas. But the company’s vice president said the data shows the labor market is at an “inflection point.”
New signs of a worsening labor market could lead the Federal Reserve to make another large interest rate cut, following last month’s 0.5% rate cut despite policymakers’ expectations of a 0.25% cut in November.
Read more: How Fed Interest Rate Cuts Affect Bank Accounts, CDs, Loans, and Credit Cards
Meanwhile, the Israel-Iran crisis helped send oil prices higher for a third day in a row, another potential drag on economic activity. Brent crude (BZ=F) and West Texas Intermediate (CL=F) futures were both up more than 2% on Thursday.
On the corporate side, Levi Strauss (LEVI) shares fell more than 10% premarket after the jeans giant posted disappointing sales forecasts and said it was considering selling its Dockers brand. Shares of Tesla (TSLA) continued to fall on poor delivery numbers, as Reuters reported that the EV maker has suspended online U.S. orders for its cheapest Model 3.
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Stocks begin to fall on monthly jobs report, tensions rise in Middle East
Stocks opened lower on Thursday as investors this week turned to monthly jobs data for clues about the health of the economy while also keeping a close eye on the Middle East conflict.
The S&P 500 (^GSPC) fell 0.3%. The Dow Jones Industrial Average (^DJI) fell 0.3%, and the tech-heavy Nasdaq Composite (^IXIC) fell 0.5% after all three averages closed above flat lines on Wednesday.
Investors await the highly anticipated September jobs report on Friday morning. The weekly number of unemployment claims released Thursday was up slightly from the previous week.
On the commodities front, oil prices rose on Thursday as the Israel-Iran crisis raised concerns about supply disruptions in the region. Brent crude (BZ=F) and West Texas Intermediate crude (CL=F) were each up more than 2% in morning trading.
