Stocks exhibited volatility throughout Thursday's trading, continuing the tepid performance from the previous day. The primary indices oscillated around the unchanged mark throughout the session.
As it stands, all major indices are in decline. The Dow has fallen 282.31 points, or 0.7%, to 41,914.21. The Nasdaq is down by 41.44 points, or 0.2%, at 17,883.69, while the S&P 500 has dropped 20.98 points, or 0.4%, to 5,688.56.
The prevailing weakness on Wall Street is partly attributed to the steep rise in crude oil prices. Futures for November delivery have surged $3.53, or 5.0%, reaching $73.63 per barrel. The uptick in oil prices stems from traders closely monitoring events in the Middle East, where ongoing conflict stokes fears about crude oil supply disruptions.
The Israel Defense Forces reported that approximately 100 projectiles were fired from Lebanon into Israeli territory earlier today. Additionally, the IDF conducted a strike on a military site in southern Lebanon, reportedly killing several Hezbollah commanders. These tensions follow Iran's recent ballistic missile attack on Israel, which prompted Israel to promise a "very strong" response.
Meanwhile, traders remain hesitant to make bold moves before the Labor Department releases its highly anticipated monthly jobs report on Friday. Analysts anticipate the report will reveal a 140,000 job increase for September, following August's 142,000-job rise, with the unemployment rate expected to remain at 4.2%.
The forthcoming data could influence projections for the U.S. economy and shape expectations regarding the Federal Reserve’s approach to interest rate adjustments. Currently, CME Group's FedWatch Tool indicates a 67.1% probability of a quarter-point rate cut and a 32.9% likelihood of a half-point cut.
Ahead of the key jobs report, the Labor Department released a report showing an uptick in initial claims for U.S. unemployment benefits for the week ended September 28th.
**Sector Analysis**
Gold stocks are experiencing significant weakness, dragging the NYSE Arca Gold Bugs Index down by 2.1%, despite a modest rise in gold prices. Airline stocks also exhibit notable weakness, with the NYSE Arca Airline Index declining by 2.0%.
Additionally, steel, networking, and biotechnology sectors have seen pronounced declines, whereas energy stocks are climbing sharply in tandem with crude oil prices.
**International Markets**
In Asian markets, Thursday’s trading brought mixed results. Japan's Nikkei 225 Index surged by 2.0%, while Hong Kong's Hang Seng Index decreased by 1.5%.
Conversely, major European markets experienced downturns. France's CAC 40 Index fell by 1.3%, Germany's DAX Index decreased by 0.8%, and the U.K.'s FTSE 100 Index declined slightly by 0.1%.
In the bond market, treasury prices continued their decline from the previous session, pushing the yield on the benchmark ten-year note up by 4.9 basis points to 3.834%.