US Stocks Slide as Hawkish Tone Dominates Ahead of Nonfarm Payrolls Report

The three major US stock indexes closed lower on Thursday, snapping a five-day winning streak for the Dow Jones Industrial Average. The S&P 500 lost 0.18%, and the Nasdaq dipped 0.06%. This decline was attributed to profit-taking ahead of the nonfarm payrolls report, combined with an inflation repricing driven by a sharp jump in oil prices.

Brent crude settled 5% higher at $82.9 a barrel, while WTI crude settled up 4% at $77. The increase in oil prices was largely due to Iran's proposal for rules governing passage through the Strait of Hormuz, which would ban US and Israeli vessels from transiting and impose fines of up to 20% of cargo value on violators.

The US Treasury market remained under pressure, with the 10-year yield climbing roughly 6.5 basis points. The dollar rebounded on the back of higher yields, with the dollar index testing the 100 level.

Gold briefly surged past $4,300 per ounce before paring gains to close flat. LME copper prices hit a high not seen since January this year and near all-time peaks at $14,369/ton after rising almost 2% due to supply constraints and electricity usage at AI data centers.