Market sentiment turned cautious on Thursday as investors digested a mixed bag of economic data and geopolitical tensions. The labor market showed signs of slowing, with initial jobless claims rising to 225,000, exceeding expectations of 221,000. Meanwhile, the four-week moving average hit its lowest level since June, suggesting a resilient job market. However, investors remain anxious about the Middle East conflict, which has driven oil prices higher and sparked fears of supply disruptions.
As the market awaits the release of the September nonfarm-payrolls report on Friday, expectations are running high. Analysts predict the unemployment rate will hold steady at 4.2%, with job growth expected to reach 150,000, slightly above August’s figure. The report will be closely watched by the Federal Reserve, which is considering its next rate-cut decision.
In the meantime, US stocks edged lower, with the S&P 500, Dow Jones Industrial Average, and Nasdaq composite all posting modest declines. The energy sector was a notable exception, with oil prices surging 2.5% to $71.88 a barrel amid concerns about supply disruptions.
In other market news, analysts at RBC Capital Markets identified two sectors poised to benefit from a Trump re-election in November. Meanwhile, OpenAI announced plans to allow employees to sell some stock following a massive fundraising round. In commodities, gold prices held steady, while the 10-year Treasury yield rose 2 basis points to 3.813%. Bitcoin prices inched lower to $60,438.
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