Oil Prices Jump 3% as Houthi Attack Revives Supply Fears 
Gold Holds Near $4,275 as Rising Treasury Yields Fuel Fed Rate Hike Bets 
China Consumer Stocks Near Decade Lows as AI Shares Surge 
US Stocks Face Jobs, Inflation Test as Fed Rate Hike Bets Rise 
South Korea Tax Windfall Could Top 50 Trillion Won on Chip Boom 
Japanese Bank Stocks Surge as Bond Yields Fuel Rate Hike Bets 
UK PM Burnham to Unveil Economic Vision at Labour Conference 
Germany’s 2026 Growth Outlook Strengthens on Fiscal Spending 
ECB May Stop Rate Hikes After December, Capital Economics Says 
Trump to Ease U.S. Fuel-Economy Standards 
Fed Unveils Stablecoin Rules Under GENIUS Act 
US Stock Futures Fall as Treasury Yields Surge Ahead of Trump-Xi Summit 
Wall Street Ends Flat as Oil, Treasury Yields and Fed Jitters Rattle Markets 
Trump, Xi Focus on Trade and AI at White House Summit 
US Comfortable With Canada Trade Standoff as Import Bans Loom 
Europe’s AI Data Centre Boom Strengthens Case for Nuclear Power 
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The S&P 500 fell on Thursday as investors digested data indicating a weaker labor market alongside mounting geopolitical tensions in the Middle East, all occurring just a day before the anticipated monthly jobs report.
By 4:00 p.m. ET (2000 GMT), the Dow Jones Industrial Average dropped by 184 points, or 0.4%, while the S&P 500 index declined by 0.2%. The NASDAQ Composite also dipped, falling 0.1%.
Middle East Crisis Impacts S&P 500 and Risk Assets
The recent escalation of conflict in the Middle East has dampened market risk sentiment, affecting S&P 500 news and broader market indices. President Joe Biden stated on Thursday that Israel is not expected to carry out retaliatory strikes against Iran immediately, following Iran's attack on Tel Aviv earlier in the week.
Biden also mentioned that the U.S. is currently in discussions with Israel regarding possible targets for strikes in Iran, potentially focusing on the country’s oil infrastructure. A U.S. official, as reported by the Financial Times, indicated that any response from Israel would likely be measured to prevent further escalation.
Oil prices have surged amidst Middle East tensions, lifting energy stocks into positive territory. “Escalation in the Middle East has led markets to price in a greater risk of a fully-fledged conflict in the region, which could potentially involve the U.S.,” ING analysts noted in a recent briefing.
Jobless Claims Shape Outlook Ahead of Payroll Report
Market traders are cautiously awaiting Friday's key nonfarm payroll report, a significant indicator expected to steer the market's direction before the Federal Reserve’s next rate-setting meeting. Recent S&P 500 news highlights that the number of Americans filing initial claims for state unemployment benefits rose more than expected last week but remained near a four-month low.
The seasonally adjusted initial jobless claims climbed to 225,000 in the week ending September 28, increasing from a revised figure of 219,000 the previous week, according to data from the U.S. Labor Department. Economists had forecasted 222,000 claims. The earlier reading for the week ended September 21 was at 218,000, the lowest since mid-May.
In another economic development, services activity slightly underperformed in September.
Corporate Sector Updates: Levi Strauss, Tesla, and Nvidia
In corporate S&P 500 news, Levi Strauss shares slumped over 7% after announcing a review of its Dockers brand for a potential sale and a downward revision of its full-year revenue forecast.
Tesla also saw a decline of 3%, extending its losses from the previous session following disappointing third-quarter deliveries. The U.S. National Highway Traffic Safety Administration stated that Tesla is recalling 27,185 Cybertruck vehicles in the U.S. due to an issue with the rear-view camera reducing visibility.
Conversely, NVIDIA Corporation shares rose over 3%, driven by CEO Jensen Huang's comments to CNBC, revealing "insane" demand for the company's upcoming Blackwell AI chips.
