U.S. stocks softened on Thursday, influenced by mixed economic data and a cautious forecast from Walmart. Signs of a resilient labor market supported the dollar.
The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all registered modest declines. Global equities also pulled back, halting recent winning streaks.
Mounting concerns over oil supply, driven by potential U.S.-Iran conflict, bolstered crude oil and gold prices. "It's the elephant in the room, what's going on in the Middle East," noted Chuck Carlson, CEO at Horizon Investment Services. "It certainly has ramifications for commodities, specifically oil and also gold."
U.S. crude rose, while Brent crude also climbed. The dollar extended its gains as jobless claims data and Federal Reserve minutes suggested a divergence among policymakers regarding near-term interest rate cuts.
"The jobs market is okay, but there's still a bit of job insecurity that's out there," Carlson added. "It gives the Fed a pause, trying to evaluate not just the numbers, but how job insecurity is affecting the rest of the economy."
In Treasuries, yields edged higher as traders assessed the Federal Reserve's future interest rate path. Gold prices increased, reflecting renewed demand for the safe-haven asset amidst geopolitical uncertainties and labor market stability.