US Stock Futures Decline; Attention on Levi Strauss and Jobless Claims

U.S. stock futures continued their decline on Thursday as the volatile situation in the Middle East weighed on market sentiment. Investors are also preparing for the critical jobs report scheduled for release at the end of the week.

As of 06:00 ET, the Dow Futures contract decreased by 125 points (0.3%), the S&P 500 Futures fell by 18 points (0.3%), and the Nasdaq 100 Futures dropped by 78 points (0.4%).

The main indices finished close to unchanged on Wednesday after experiencing a significant decline on Tuesday, fueled by escalating tensions in the Middle East following an Iranian missile attack on Israel.

### Middle East Tensions Impact Risk Assets

The ongoing conflict in the Middle East has severely affected risk sentiment, as Israel considers its response to the Iranian bombardment. Analysts from ING noted that the rising tensions lead markets to account for an increased risk of broader conflict in the region, which could potentially involve the United States.

### Jobless Claims and Labor Market Data

Traders are also cautious ahead of Friday’s nonfarm payrolls report, which could influence market direction prior to the Federal Reserve’s upcoming rate-setting meeting. On Thursday, investors will have the opportunity to review the latest weekly claims for unemployment benefits along with services activity data.

Earlier data on job openings and private payrolls have indicated a relatively healthy labor market, which has tempered expectations for another substantial interest rate hike from the Federal Reserve.

### Corporate Developments

In corporate news, Levi Strauss saw its stock drop in premarket trading after announcing a review process for the possible sale of its Dockers brand and lowering its full-year revenue forecast. Meanwhile, Tesla also experienced a decline following disappointing third-quarter delivery figures and news of a recall affecting over 27,000 Cybertruck vehicles due to concerns regarding visibility.

### Oil Prices Rise Amid Escalating Conflict

Oil prices increased on Thursday as ongoing violence in the Middle East raised fears of potential disruptions to crude supply from this critical exporting region. By 06:00 ET, Brent crude climbed 1.8% to $75.22 per barrel, while U.S. crude futures were up 2% at $71.50 per barrel.

Traders are closely monitoring the situation as Israel prepares to respond to Iran’s recent missile attacks, which may include threats to Iranian oil infrastructure. Additionally, U.S. crude inventories rose by 3.9 million barrels to 417 million barrels for the week ending September 27, contrary to expectations for a decrease.