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Indexes fell on Thursday as investors assessed unemployment claims and geopolitical tensions.
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Jobless claims rose to 225,000, beating forecasts of about 221,000.
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On Friday, investors will get a new labor market update from the September nonfarm payrolls report.
U.S. stocks edged lower Thursday, fueled by a surge in jobless claims ahead of a major jobs report and continued tensions in the Middle East.
Weekly unemployment claims rose by 6,000 to 225,000, according to Labor Department figures released Thursday.
That beat forecasts of about 221,000, but weekly claims remained low, with the four-week moving average falling to the lowest since June.
Investors are also focused on the simmering geopolitical conflict in the Middle East, which led to a sell-off early Tuesday and Wednesday after Iran’s missile attack on Israel.
Oil prices have risen sharply this week as investors fear supply disruptions if Israel retaliates by attacking Iranian oil facilities.
On Friday, investors will be closely watching the September jobs report, which is expected to show the unemployment rate holding steady at 4.2%. Forecasters see an increase of 150,000 jobs in September, up from August’s figure of 142,000.
The data will be a key indicator of the Federal Reserve’s next rate cut decision, following last month’s massive 50 basis point rate cut. According to the CME FedWatch Tool, markets are pricing in a 65% chance of a smaller cut of 25 basis points in November.
Analysts say the report is likely to have a major impact on both markets and the Fed in the coming weeks.
“We believe a soft employment report is likely to generate a larger market reaction than a strong employment report,” Bank of America analysts said in a Wednesday report.
“We think the market is likely to focus most on labor data in the coming weeks, but we should recognize that November inflation numbers could also support a further 50 basis point cut,” she added.
Here’s where US indexes stood shortly after the 9:30 a.m. opening bell on Thursday:
Here’s what else happened on Thursday:
In commodities, bonds and crypto:
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Oil futures rose. West Texas Intermediate crude rose 2.5% to $71.88 a barrel. Brent crude, the international benchmark, rose 2.3% to $75.62 per barrel.
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Gold was essentially flat at $2,668 an ounce.
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The yield on ten-year government bonds rose by 2 basis points to 3.813%.
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Bitcoin slowly fell to $60,438.
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