Stock Market Today: S&P 500 Declines Amid Increasing Mid-East Tensions; Jobs Report on the Horizon

The S&P 500 experienced a decline on Thursday, as investors assessed data indicating a softer labor market amid ongoing geopolitical tensions in the Middle East, just one day before an important monthly jobs report.

By 4:00 p.m. ET, the Dow Jones Industrial Average was down 184 points, or 0.4%. The S&P 500 index fell by 0.2%, while the NASDAQ Composite decreased by 0.1%.

### Middle East Affects Risk Assets

Market sentiment has been negatively impacted this week due to escalating conflict in the Middle East. President Joe Biden stated on Thursday that he does not anticipate Israel to conduct retaliatory strikes against Iran today, following an earlier attack on Tel Aviv.

Biden also mentioned ongoing discussions with Israel regarding potential targets for strikes in Iran, which are likely focused on the Islamic Republic’s oil facilities. According to an unnamed U.S. official, any Israeli response is expected to be measured, aiming to avoid further escalation.

Oil prices rose in response to the tensions, helping energy stocks end the day positively.

“Escalation in the Middle East has led markets to factor in a higher risk of full-scale conflict in the region, which could involve the U.S.,” analysts at ING noted.

### Jobless Claims Set Stage for Payrolls Report

Traders are also cautious ahead of Friday’s critical nonfarm payrolls report, which is expected to influence market direction leading up to the Federal Reserve’s next rate-setting meeting.

Last week, the number of Americans filing for first-time unemployment benefits rose more than expected, but remained close to a four-month low from the previous week. Seasonally-adjusted initial jobless claims climbed to 225,000 for the week ending September 28, up from a revised figure of 219,000 the week before. Economists had forecasted claims at 222,000.

The earlier reading for the week ending September 21 was 218,000, marking the lowest level since mid-May.

Additionally, services activity showed a slight decline in September, more than anticipated.

### Corporate Developments: Levi Strauss, Tesla, and NVIDIA

In corporate news, Levi Strauss saw its shares drop more than 7% after announcing that its Dockers brand is under review for a potential sale and lowering its full-year revenue forecast.

Tesla’s stock fell by 3%, adding to losses from the previous session following disappointing Q3 delivery numbers. The U.S. National Highway Traffic Safety Administration announced that the company was recalling 27,185 Cybertruck vehicles due to a rearview image delay that impacts visibility.

Conversely, NVIDIA’s shares rose more than 3% after CEO Jensen Huang highlighted “insane” demand for the company’s next-generation Blackwell AI chips in an interview.

This summary encapsulates the current market behavior and notable events in the corporate sector.