U.S. stocks closed lower Thursday as a rebound in crude oil revived concerns about Iran-related energy disruptions while investors held back ahead of Friday’s jobs report. The Dow Jones Industrial Average fell 313.62 points, or 0.63%, to 49,597.0; the S&P 500 declined 28.03 points, or 0.38%, to 7,337.09; and the Nasdaq Composite slipped 32.75 points, or 0.13%, to 25,806.2.
The selling reflected a market unwilling to chase risk into the close as geopolitical uncertainty returned to the center of the trade. Reuters reported that Gulf markets had been supported by optimism over a potential U.S.-Iran peace deal, though unresolved issues around Iran’s nuclear program and the Strait of Hormuz remained key risks.
Oil’s reversal sharpened that caution. Crude climbed $1.52, or 1.60%, to $96.60 after trading lower earlier, adding pressure to inflation-sensitive parts of the market and complicating the Federal Reserve outlook.
Investors were also reluctant to make large bets before Friday’s employment report. Economists expect April payroll growth of roughly 55,000 to 67,000 jobs, with unemployment near 4.3% and wage growth around 3.8% from a year earlier.
Technology offered only limited support. Mega-cap earnings remain strong, with the Magnificent 7 posting 61% earnings growth versus 16.4% for the rest of the S&P 500, but be warned that market leadership has become increasingly concentrated.
The VIX fell 0.24 point, or 1.38%, to 17.15, suggesting the decline was orderly rather than panic-driven. Still, Thursday’s close showed investors becoming more defensive as oil, geopolitics and labor-market uncertainty converged before tomorrow's jobs report.