The S&P 500 Index closed down 1.74% on Thursday, while the Dow Jones Industrial Average fell by 1.01% and the Nasdaq 100 dropped 2.38%, hitting a 6.5-month low. The decline in U.S. stock markets was driven by surging crude oil prices, which increased more than 4% due to escalating tensions regarding Iran. The International Energy Agency (IEA) reported that the ongoing conflict in Iran has disrupted 7.5% of global oil supply, with a forecasted cut of 8 million barrels per day this month.
In employment news, U.S. weekly initial unemployment claims rose by 5,000 to 210,000, aligning with expectations, while continuing claims decreased by 32,000 to a 1.75-year low of 1.819 million. The Kansas City Fed manufacturing activity unexpectedly rose to a 3.5-year high of 11, surpassing forecasts. The Organization for Economic Cooperation and Development (OECD) increased its G-20 inflation forecast for 2026 to 4.0%, significantly impacted by the situation in Iran. Additionally, bond yields rose in response to higher inflation expectations, with the 10-year T-note yield up to 4.42%.
