US stocks fell on Thursday as investors grappled with rising tensions in the Middle East and awaited key US jobs data. Wall Street extended its downtrend amid concerns of potential escalation in the Israel-Iran conflict, which also pushed oil prices higher.
Oil prices surged following President Joe Biden’s comments about discussing possible Israeli strikes on Iranian oil facilities. While this development boosted petroleum-related stocks, it weighed on the broader market.
The Dow Jones Industrial Average dropped 0.4 percent, closing at 42,011.59, while the broad-based S&P 500 slipped 0.2 percent to 4,699.94. The Nasdaq Composite Index dipped by less than 0.1 percent, finishing at 17,918.48.
Meanwhile, the Institute for Supply Management’s services index for September beat expectations, rising to 54.9 percent, providing a boost to confidence in the US economy. Investors are now looking to Friday’s US jobs report, which could influence future Federal Reserve decisions on interest rates.
Petroleum-linked stocks performed well, with ConocoPhillips up by 1.8 percent and both Halliburton and Apache gaining around three percent. However, Constellation Brands saw a 4.7 percent drop after its wine and spirits division reported a 12 percent decline in quarterly sales compared to the same period last year.