Stock market news for October 3, 2024

Stocks fell on Thursday as concerns over Middle East tensions kept investors on edge in the run up to September’s payrolls report.

The Dow Jones Industrial Average slid 184.93 points, or 0.44%, to end at 42,011.59. The S&P 500 lost 0.17% to close at 5,699.94. The Nasdaq Composite ended the day off 0.04% at 17,918.48 as a rally of more than 3% in Nvidia capped downside pressure.

October trading is off to a rocky start as escalating tensions in the Middle East dampen investors’ enthusiasm. After stocks tumbled on Tuesday with Iran launching a missile attack on Israel, investors are now preparing for further uncertainty as Israel starts a ground operation into Lebanon.

U.S. crude futures rose more than 5%. That propelled its week-to-date advance to more than 8% as growing fears tied to the Middle East pushed up prices.

Energy stocks have rallied in tandem, with the S&P 500 sector up about 5.9% on the week. The sector is on pace for its best week in more than a year.

But energy was one of few bright spots in Thursday’s otherwise bleak market. Nearly 4 out of every 5 S&P 500 members fell. Small-cap stocks also struggled, with the Russell 2000 tumbling 0.7%.

With Thursday’s moves, the three major indexes are tracking for losses this week. The Dow and S&P 500 have each dropped 0.7%, while the Nasdaq is poised to finish 1.1% lower.

That marks a turn after a strong three quarters, with Bespoke Investment Group finding 2024 had the biggest gain over the first nine months of a year since 1997.

“We’ve got a fantastic year under our belts so far,” said Mike Dickson, head of research and quantitative strategies at Horizon Investments. But, “there’s definitely some overhangs.”

Weekly jobless claims came in slightly higher than economists polled by Dow Jones forecasted, according to data released Thursday. That offers hints into the health of the labor market as traders gear up for September’s closely watched payrolls report due on Friday morning.