Signs of a cooling labor market last month pushed major U.S. stock averages lower on Thursday, ahead of the highly anticipated August jobs report set for release on Friday.

Private sector job creation came in at 99,000 for August, according to ADP data, marking the slowest pace of growth since January 2021 and missing the forecast of 140,000.

A stronger-than-expected services sector activity sentiment for August offered some relief to broader recession concerns, but an employment subindex bolstered hints of the ongoing cooling in the labor market.

The S&P 500 dropped below the 4,500 support level for the first time since mid-August, extending weekly losses to 2.9%, and is on track for its worst week since mid-April.

A decision from OPEC+ to delay an October oil production increase by two months supported crude prices and further pressured already fragile investor sentiment. West Texas Intermediate (WTI) crude stopped its decline after suffering its worst two-day slump since October 2023.

Treasury yields dipped slightly, and the U.S. dollar softened. Meanwhile, gold edged higher by 0.6%.

Natural gas was Thursday's standout performer, with Henry Hub prices surging over 5%. The U.S. Energy Information Administration reported a natural gas storage injection of 13 billion cubic feet (Bcf) for the week ending Aug. 30, significantly below historical averages and expectations.

Sentiment in crypto assets worsened, with Bitcoin BTC/USD tumbling 3% to $56,170.

Thursday’s Performance In Major US Indices, ETFs

Major Indices Price % change Nasdaq 100 18,906.30 -0.1% S&P 500 5,495.09 -0.5% Russell 2000 2,132.72 -0.6% Dow Jones 40,638.99 -0.8% Updated at 12:52 p.m.

According to Benzinga Pro data:

The SPDR S&P 500 ETF Trust SPY was 0.5% lower to $548.40.

was 0.5% lower to $548.40. The SPDR Dow Jones Industrial Average DIA fell 0.8% to $407.30.

fell 0.8% to $407.30. The tech-heavy Invesco QQQ Trust Series QQQ edged 0.1% lower to $459.90.

edged 0.1% lower to $459.90. The iShares Russell 2000 ETF IWM fell 0.6% to $211.35.

fell 0.6% to $211.35. The Consumer Discretionary Select Sector SPDR Fund XLY outperformed, up by 0.8%, while the Health Care Select Sector SPDR Fund XLV lagged, down 1.5%.

Thursday’s Stock Movers

Tesla Inc. TSLA rallied 4% after announcing it plans to roll out its Full Self-Driving (FSD) technology in China and Europe during the first quarter of 2025, pending regulatory approvals. The EV maker will also produce a six-seat Model Y variant in China, starting next year.

rallied 4% after announcing it plans to roll out its Full Self-Driving (FSD) technology in China and Europe during the first quarter of 2025, pending regulatory approvals. The EV maker will also produce a six-seat Model Y variant in China, starting next year. Verizon Communications Inc . VZ announced Thursday it has reached an agreement to acquire Frontier Communications Parent Inc. FYBR in an all-cash deal valued at approximately $20 billion. Shares of Verizon eased 0.6%, while those of Frontier Communication Parent plummeted 9% after rallying 37% on Wednesday.

. announced Thursday it has reached an agreement to acquire in an all-cash deal valued at approximately $20 billion. Shares of Verizon eased 0.6%, while those of Frontier Communication Parent plummeted 9% after rallying 37% on Wednesday. United Steel Corp. X rose 4% after tumbling 17% Wednesday. According to Reuters, the Committee on Foreign Investment in the U.S. (CFIUS) has raised concerns about potential national security risks related to Nippon Steel’s planned $14.9 billion acquisition of U.S. Steel.

rose 4% after tumbling 17% Wednesday. According to Reuters, the Committee on Foreign Investment in the U.S. (CFIUS) has raised concerns about potential national security risks related to Nippon Steel’s planned $14.9 billion acquisition of U.S. Steel. NIO Inc. – ADR NIO rallied 11% in reaction to upbeat quarterly results and improved guidance.

rallied 11% in reaction to upbeat quarterly results and improved guidance. Other stocks reacting to earnings results included The Toro Company TTC down over 10%, Copart Inc. CPRT down 6.7%, Hewlett Packard Enterprise Co. HPE down 5.3%, Core & Main, Inc. CNM down 0.7%, Credo Technology Group Holding Ltd CRDO and C3.ai, Inc. AI , both down around 13%.

down over 10%, down 6.7%, down 5.3%, down 0.7%, and , both down around 13%. Companies reporting results after the close include Broadcom Inc. AVGO , Samsara Inc. IOT , DocuSign Inc. DOCU , Ui Path Inc. PATH and Smartsheet Inc. SMAR .

Could August Jobs Numbers Keep Recession Fears At Bay? ‘This Time Is Different,’ Analyst Says

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