U.S. stocks closed lower on Thursday as investors remained cautious ahead of September's payrolls report, with escalating tensions in the Middle East weighing on market sentiment.
The Dow Jones Industrial Average fell 184.93 points, or 0.44%, to close at 42,011.59. The S&P 500 slipped 9.60 points, or 0.17%, ending at 5,699.94. The Nasdaq Composite Index edged down 6.65 points, or 0.04%, to 17,918.48.
Of the 11 primary sectors in the S&P 500, eight ended in the red. Consumer discretionary and materials sectors led the decline, losing 1.28% and 1.15%, respectively. Conversely, energy and technology sectors posted gains, rising 1.58% and 0.60%, respectively.
The markets have experienced a turbulent start to October, with geopolitical conflicts in the Middle East dampening investor enthusiasm. Earlier this week, stocks fell sharply following reports of Iran's missile attack on Israel. Investors are now bracing for further uncertainty as Israel launched a ground offensive into Lebanon.
Crude oil futures in the United States surged by more than 5%, extending their week-to-date gains to over 8% as geopolitical concerns drove oil prices higher. The rise in oil prices reflects fears of potential disruptions to supply amid escalating tensions.
Meanwhile, weekly jobless claims came in slightly above economists' expectations, offering a glimpse into the labor market's condition ahead of Friday's closely watched payrolls report. Investors are keenly awaiting the data for insights into the health of the U.S. economy and potential implications for Federal Reserve policy.
\"We can't focus too much on one month of job reports, but the trend is moving in the right direction from an inflation standpoint and a labor market balance standpoint,\" said Jeremiah Buckley, equities portfolio manager at Janus Henderson, on Thursday. \"We continue to believe the fundamental economic backdrop continues to be positive.\"
On the corporate front, Tesla shares continued their downward trajectory, falling over 3% after Reuters reported that the electric vehicle maker had stopped taking U.S. online orders for its cheapest Model 3, following disappointing delivery numbers. The move has raised concerns about demand and production challenges facing the company.
Reference(s):
cgtn.com
