U.S. stocks fell on Thursday as focus tentatively returned to the economy and monthly jobs report. Meanwhile, concerns about the Middle East conflict were swirling in the background.
The S&P 500 (^GSPC) fell 0.2%, and the Dow Jones Industrial Average (^DJI) fell about 0.3%. The Nasdaq Composite Index (^IXIC), which has a high proportion of high-tech stocks, fell by about 0.4%. All three gauges closed just above the flatline on Wednesday.
Some calm has returned to the market, which had been roiled by escalating tensions in the Middle East that had caused oil prices to soar. Israel has yet to launch its promised retaliation for Tuesday’s Iranian missile attack as Western countries and regional leaders seek to stabilize the situation.
Investors are now bracing for the much-awaited September jobs report to be released on Friday, following an unexpected increase in private payrolls and signs of easing in the labor market.
Investors received further signs Thursday of a general cooling in the labor market. Weekly unemployment claims rose slightly from the previous week. Meanwhile, the number of planned layoffs in the U.S. has 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 a “tipping point.”
Despite policymakers expecting a 0.25% rate cut in November, new signs of deterioration in the labor market could prompt the Fed to take even larger steps following last month’s 0.5% rate cut.
Read more: What Fed Rate Cuts Mean for Bank Accounts, CDs, Loans, and Credit Cards
Meanwhile, oil prices have risen for three consecutive days due to the Israel-Iran crisis, which could also put pressure on economic activity. Brent crude oil futures (BZ=F) and West Texas Intermediate (CL=F) futures both rose more than 2% on Thursday.
On the corporate front, Levi Strauss (LEVI) shares plummeted pre-market after the jeans giant announced disappointing earnings forecasts and said it was considering selling its Dockers brand. fell more than 10%. Tesla (TSLA) stock continued to fall following lackluster delivery numbers, as Reuters reported that the EV maker had suspended online orders for its cheapest model, the Model 3, in the United States.
Live1 update
Thursday, October 3, 2024 9:30am EDT
Stocks open lower as monthly jobs report is released and Middle East tensions rise
Stocks opened lower Thursday as investors focused on the monthly jobs report for clues about the health of the economy while keeping a close eye on Middle East conflicts this week.
The S&P 500 (^GSPC) fell 0.3%. The Dow Jones Industrial Average (^DJI) fell 0.3%, and the tech-heavy Nasdaq Composite Index (^IXIC) fell 0.5% after all three averages closed above the flatline on Wednesday. .
Investors are awaiting the release of the long-awaited September jobs report on Friday morning. Weekly jobless claims reported Thursday increased slightly from the previous week.
In commodities, oil prices rose on Thursday as the Israel-Iran crisis heightened concerns about regional supply disruptions. Brent (BZ=F) and West Texas Intermediate (CL=F) each rose more than 2% in early trading.
