NEW YORK - US stocks ended lower on Thursday as markets retreated from intraday highs amid geopolitical friction over the Strait of Hormuz and a spike in domestic job cuts.
The Dow Jones Industrial Average fell 313.62 points, or 0.63 percent, to 49,596.97. The S&P 500 sank 28.01 points, or 0.38 percent, to 7,337.11, pulling back after hitting a new all-time intraday high earlier in the session. The Nasdaq Composite Index shed 32.75 points, or 0.13 percent, to 25,806.2.
Nine of the 11 primary S&P 500 sectors ended in the red. The materials and energy sectors led the laggards, dropping 1.83 percent and 1.78 percent, respectively. Meanwhile, the technology and communication services sectors were the sole gainers, each edging up by 0.08 percent.
Geopolitical tensions remained a central focus for markets. On the economic front, labor data showed signs of cooling. Global outplacement firm Challenger, Gray & Christmas reported Thursday that U.S. employers announced 83,387 planned job cuts in April. This represents a 38-percent jump from March, though it remains lower than the 105,441 cuts announced in April of last year. The technology industry accounted for 33,361 of the layoff announcements, with artificial intelligence cited as the leading reason for the cuts for the second consecutive month.
Additionally, the US Labor Department reported that initial claims for state unemployment benefits rose by 10,000 to a seasonally adjusted 200,000 for the week ended May 2.
In corporate developments, heavy machinery maker Caterpillar and financial giant Goldman Sachs did the most damage to the blue-chip Dow, falling nearly 3.37 percent and 1.22 percent, respectively.
On the earnings front, Planet Fitness plummeted more than 31 percent with Shake Shack, Zoetis and Whirlpool down 28.26 percent, 21.5 percent, and nearly 12 percent, respectively. In the technology and energy sectors, Arm Holdings fell 10.11 percent, while Shell declined more than 3 percent
Investors are now bracing for the highly anticipated April jobs report, scheduled for release on Friday morning.
