US Stocks Slide as Jobless Claims Disappoint
On Thursday, U.S. equities experienced a decline as investors evaluated additional employment data amid the ongoing volatility in the Middle East.
The S&P 500 index traded 15 points lower, or 0.3%, at 09:35 ET (13:35 GMT), while the Dow Jones Industrial Average contract was down 95 points, or 0.2%, and the NASDAQ Composite was down 80 points, or 0.5%, that same time.
Assets in the Middle East are at peril.
The escalation of the conflict in the Middle East has had a significant impact on risk sentiment this week. Israel is currently contemplating its potential response to an aerial bombardment from Iran that occurred earlier in the week.
“Markets have begun to factor in a higher likelihood of a fully-fledged conflict in the Middle East, which could potentially involve the United States,” stated analysts at ING in a note.
Payrolls are initiated by jobless claims.
Traders are also cautious in anticipation of the critical nonfarm payrolls report on Friday, which is expected to determine the market’s trajectory prior to the Federal Reserve’s forthcoming rate-setting meeting.
The number of Americans who submitted their first-time claims for state unemployment benefits increased more than anticipated last week, but it did not deviate significantly from the four-month low that was reached the previous week.
In the week ending on September 28, seasonally-adjusted initial jobless claims increased to 225,000, a rise from the upwardly-revised figure of 219,000 last week, according to data released by the Labor Department on Thursday. Economists had anticipated a total of 222,000.
The previous reading for the week ending on September 21 was 218,000, the lowest since mid-May.
The services activity figures for September will provide additional economic data to analyze later on Thursday.
Levis Strauss experiences a downturn.
Following the announcement that Levi Strauss (NYSE:LEVI) has placed its Dockers brand under review for potential sale and reduced its group-wide full-year revenue forecast, the stock of the jeans manufacturer declined by 9% in the corporate sector.
Tesla (NASDAQ:TSLA) stock also declined by 0.4%, compounding the previous session’s losses due to disappointing third-quarter deliveries. The U.S. National Highway Traffic Safety Administration announced that the EV manufacturer was recalling 27,185 Cybertruck vehicles in the United States due to a delayed rear view image that impedes visibility behind the vehicle.
The potency of crude is maintained.
The escalating violence in the Middle East on Thursday prompted concerns that petroleum flows from this critical exporting region could be disrupted, resulting in an increase in oil prices.
The Brent contract had increased by 2.3% to $75.55 per barrel by 09:35 ET, while U.S. crude futures (WTI) were trading at $71.94 per barrel, a 2.6% increase.
Traders are anticipating Israel’s response to Iran’s launch of over 180 missiles into its territory on Wednesday, as they are concerned that it may target Iranian energy infrastructure.
In contrast to projections of a 1.3 million-barrel draw, U.S. crude inventories increased by 3.9 million barrels to 417 million barrels in the week ending on Sept. 27, according to the Energy Information Administration on Wednesday.
