S&P 500 falls on oil spike as rough October continues: Live updates

The S&P 500 fell on Thursday as concerns over Middle East tensions continued worrying investors in the run up to September’s payrolls report.

The broad index shed 0.4%, as did the Nasdaq Composite. The Dow Jones Industrial Average slid 285 points, or 0.7%.

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 4%, bringing its week-to-date advance to more than 7% as growing fears tied to the Middle East provided upside pressure. Energy stocks have rallied in tandem, with the S&P 500 sector up about 5.6% on the week. That put the sector on pace for its best week in more than a year.

But energy was a singular bright spot in Thursday’s otherwise bleak market. More than 4 out of every 5 S&P 500 members traded lower, while just 2 of the 30 stocks in the Dow tracked for gains.

With Thursday’s moves, the three major indexes are tracking for losses this week. 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.