US stocks edged lower on Thursday as investors braced for the release of September’s payrolls report and monitored escalating tensions in the Middle East.
The Dow Jones Industrial Average fell 192 points, or 0.2%, while both the S&P 500 and Nasdaq Composite slipped by 0.2%. Despite the declines, Nvidia shares rose by more than 2%, helping to offset broader losses.
October has been a difficult month for the stock market so far, with geopolitical tensions weighing on investor sentiment. On Tuesday, stocks took a hit following Iran’s missile attack on Israel, and uncertainty continues to grow as Israel prepares for a ground operation into Lebanon. The situation has driven oil prices higher, with US crude futures rising over 1.5%, pushing this week’s gain to 4.6%. In response, energy stocks rallied, with the energy sector of the S&P 500 up about 4% this week.
In addition to global tensions, investors are closely watching US labor market data. On Thursday, weekly jobless claims slightly exceeded economists’ expectations, providing hints about the state of the labor market. Traders are now focusing on Friday’s highly anticipated September jobs report, which will offer further insights into employment trends and the broader economic outlook.
In corporate news, Levi Strauss shares fell by more than 6% after the company reported mixed results for its fiscal third quarter. Levi Strauss also announced it is considering selling its Dockers business, which has struggled and is weighing on the company’s overall performance.
Investors have been cautious, with many assessing how recent economic data and geopolitical risks will impact markets. Oil prices continue to rise amid concerns over potential supply disruptions in the Middle East, with Brent crude climbing by 1.2% to just under $75 per barrel. Meanwhile, US Treasury yields increased slightly, with the 10-year Treasury note yield surpassing 3.8%.
The global situation also affected other markets, including US-listed Chinese stocks, which fell as the recent stimulus-driven rally in Chinese markets showed signs of fading. The British pound declined 1% against the dollar after the Bank of England signaled it may cut interest rates more aggressively if inflation continues to ease.
With input from Market Watch, the Wall Street Journal, and CNBC.
