Market sentiment shifted gears on Thursday, as investors refocused on the state of the economy and the upcoming jobs report, while keeping a watchful eye on the simmering Middle East tensions. The S&P 500 Index experienced a modest decline of 0.2%, mirroring the 0.3% drop in the Dow Jones Industrial Average. The tech-centric Nasdaq Composite also edged lower, although it managed to pare some of its losses later in the session.
After a period of heightened volatility sparked by the escalating Mideast conflict, the market has begun to settle into a more cautious tone. Despite Israel’s promise of retaliation against Iran’s missile strike, a sense of calm has started to creep back in, thanks in part to diplomatic efforts aimed at de-escalating the situation.
Investors are now squarely focused on the highly anticipated September jobs report, set to be released on Friday. The latest data from the labor market suggests a gradual cooling trend, with weekly jobless claims inching up slightly from the previous week. Meanwhile, planned layoffs in the US have decreased from a five-month high, according to a report from Challenger, Gray and Christmas. However, the firm’s vice president cautioned that the labor market is reaching an inflection point, which could have significant implications for the Federal Reserve’s future policy decisions.
The ongoing tensions between Israel and Iran have contributed to a surge in oil prices, with Brent crude and West Texas Intermediate futures both rising by over 2% on Thursday. This development could potentially put a damper on economic activity, adding to the list of concerns for investors.
In corporate news, Levi Strauss shares plummeted over 10% in premarket trading after the company issued a disappointing revenue forecast and announced it was exploring the sale of its Dockers brand. Tesla’s stock continued its downward trajectory, following a lackluster delivery report, while Nvidia shares bucked the trend, rising over 4% on the back of strong demand for its AI chips.
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