Market sentiment shifted gears on Thursday, as investors redirected their attention to the upcoming jobs report and the state of the economy, while keeping a watchful eye on the simmering Middle East tensions. Futures contracts for the S&P 500, Dow Jones Industrial Average, and Nasdaq 100 all slipped, shedding around 0.3-0.4% of their value. The previous day’s trading session had seen all three indices close marginally above the break-even point. As the threat of immediate retaliation from Israel subsided, following Iran’s missile strike earlier in the week, market participants began to focus on the crucial September jobs data, slated for release on Friday. The report is expected to provide insight into the labor market’s trajectory, with investors keenly awaiting signs of either a steady slowdown or emerging cracks. Any indication of deterioration could prompt the Federal Reserve to consider a more aggressive interest-rate cut in November, despite policymakers’ initial expectations of a smaller 0.25% reduction. The central bank’s 0.5% rate cut last month had sparked a rally in the markets. Ahead of the jobs report, investors will scrutinize Thursday’s readings on weekly jobless claims and the services sector for additional clues. Meanwhile, the ongoing Israel-Iran crisis continued to exert upward pressure on oil prices, with Brent crude and West Texas Intermediate futures rising over 1% on Thursday. In corporate news, Levi Strauss shares plummeted over 10% in premarket trading after the company issued a disappointing revenue forecast and announced plans to potentially divest its Dockers brand. Tesla’s stock continued its downward slide, following a lackluster delivery report, with Reuters reporting that the electric vehicle maker had suspended online orders for its entry-level Model 3 in the US.
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