

Market Analysis
U.S. stock futures continued their decline on Thursday, influenced by ongoing volatility in the Middle East and investors preparing for the critical jobs report set to be released at the end of the week.
As of 06:00 ET (10:00 GMT), the Dow Futures contract had dropped 125 points, or 0.3%. S&P 500 Futures were down 18 points, also 0.3%, while Nasdaq 100 Futures fell 78 points, or 0.4%.
The major indices closed near breakeven on Wednesday, following a sharp decline on Tuesday, the first trading day of the new quarter, after Iran launched a missile attack against Israel, intensifying tensions in the region.
Middle East Impacts Risk Assets
Risk appetite has significantly weakened this week due to the escalation of conflict in the Middle East, with Israel considering its potential response to the recent aerial attacks from Iran.
Analysts at ING noted that “the escalation in the Middle East has led markets to factor in a higher risk of a comprehensive conflict in the region, which could involve the United States.”
Jobless Claims Contribute to Labor Data
Traders are also on edge ahead of Friday's crucial nonfarm payrolls report, which is expected to influence market trends ahead of the Federal Reserve's upcoming rate-setting meeting.
Before this release, markets will analyze the latest weekly data on first-time jobless claims and services activity on Thursday.
This week’s data, including job openings and ADP private payroll figures, has indicated a relatively healthy labor market, diminishing the likelihood of the Federal Reserve implementing another significant interest rate hike following last month’s 50 basis-point increase.
Levi Strauss Faces Decline
In corporate news, Levi Strauss (NYSE) experienced a sharp decline in premarket trading after announcing a review of its Dockers brand for a potential sale, as well as a reduction in its full-year revenue forecast across the group.
Tesla (NASDAQ) also saw a decrease in premarket trading, compounding the previous day’s 3% losses due to disappointing third-quarter delivery figures. This decline followed the U.S. National Highway Traffic Safety Administration’s announcement of a recall for 27,185 Cybertruck vehicles in the U.S. because of a delayed rearview image that compromises visibility.
Crude Oil Prices Remain Strong
Oil prices increased on Thursday as escalating violence in the Middle East raised concerns about potential disruptions to crude oil flows from this critical exporting region.
By 06:00 ET, the Brent crude contract had risen 1.8% to $75.22 per barrel, while U.S. crude futures (WTI) were up 2%, trading at $71.50 per barrel.
Traders are awaiting Israel's response to Iran's firing of over 180 missiles into its territory on Wednesday, amid fears that Iranian oil infrastructure could be targeted.
Additionally, U.S. crude inventories saw an increase of 3.9 million barrels to reach 417 million barrels for the week ending September 27, according to the Energy Information Administration, contrasting with expectations of a 1.3 million-barrel draw.
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