US stocks retreated from record highs on Thursday as investors weighed a fresh round of labor data, rising oil prices and growing unease over Iran’s expected response to a US peace proposal. The Dow Jones Industrial Average sank 0.6%, the S&P 500 declined almost 0.4% and the Nasdaq Composite slipped 0.1%.
Brent oil futures rose on the day and briefly regained the $100 per barrel mark after heavier losses near 4% earlier in the session, while US WTI crude traded down by roughly 0.1% after steeper losses earlier in the session. The moves kept traders focused on whether the energy market is signaling more risk ahead as they look at Iran and the Strait of Hormuz blockade.
The day’s pullback came after record-high closes for the tech-exposed benchmarks, which had been lifted in part by a strong run in recent tech earnings. That momentum took a breather on Thursday. A Challenger report on April layoffs showed artificial intelligence was blamed as the tech sector got hit hardest, adding a new wrinkle to the debate over how fast companies are using the technology to reshape staffing.
There was at least one sign that the economy is not overheating. A weekly reading on jobless claims came in cooler than expected, easing some immediate pressure on rates-sensitive stocks. But the more important test was still ahead, with Friday’s jobs report the next major economic release investors were watching.
The market’s hesitation also came as Iran was said to be evaluating a US proposal to end the near-10-week war, with a response expected as soon as Thursday, according to. That uncertainty, along with the jump in oil, helped keep the trading session uneasy even as the major indexes remained close to their highs. For now, investors are treating the pullback less like a break in the trend than a reminder that record-setting markets can still turn on a headline.
