Wall Street Wavers Ahead of Crucial Jobs Report Amid Middle East Tensions

U.S. stocks ended lower as investors braced for the key monthly payrolls report and monitored Middle East tensions. Unemployment claims rose slightly, while uncertainties like Hurricane Helene could impact the labor market. Friday's jobs data will influence U.S. interest rate expectations as concerns over potential economic disruptions grow.

U.S. stocks closed lower on Thursday, anticipating the monthly U.S. payrolls report on Friday while keeping a keen eye on escalating tensions in the Middle East. Concerns intensify as factors such as Hurricane Helene and strikes at ports loom, potentially distorting labor market dynamics in the near future.

Economists expect the September jobs report to be pivotal for U.S. interest rates, predicting 140,000 job additions and a steady 4.2% unemployment rate. This follows the Federal Reserve's substantial 50 basis point rate cut last month, sparking investor demand for further labor market data.

Amid cautious investor sentiment, the Cboe Volatility index, known as Wall Street's fear gauge, surged to levels not seen since September 6. Additionally, geopolitical tensions rose as Israel advised evacuations in south Lebanon. The energy sector gained amidst rising oil prices, while profit-taking became prevalent after a recent market rally.

(With inputs from agencies.)