Stocks fall ahead of US jobs data, oil prices rise

On Thursday, US stocks declined prior to the release of a crucial US jobs report for the following Friday, while oil prices surged due to concerns over access to the Strait of Hormuz by the US and Israel. Iran's semi-official Fars news agency reported, based on a lawmaker's statement, that a parliamentary committee is examining a draft bill that would prohibit US, Israeli, and other hostile vessels from passing through the Strait of Hormuz.

This bill could impose fines of up to 20 percent of a ship's cargo value for breaching the restrictions. Brent crude futures rose by 3.8 percent, settling at $82.49 a barrel, while US West Texas Intermediate futures climbed by 2.8 percent to $77.29. Higher oil prices negatively impact consumers and the economy. Jake Dollarhide, CEO of Longbow Asset Management in Tulsa, Oklahoma, noted a general aversion to risk assets, citing the combination of higher oil prices and potential interest rate hikes.

All three major US stock indexes closed lower, as did a global stock index. US jobless claims rose slightly last week, but layoffs dropped to a two-year low in July, indicating a stable labor market. Investors are anticipating the US Labor Department's employment report for July, due on Friday, and are preparing for potential interest rate hikes unless inflation improves.

The Dow Jones Industrial Average fell by 464 points, or 0.9 percent, to 53,885, the S&P 500 dropped by 13 points, or 0.2 percent to 7,709, and the Nasdaq Composite declined by 15 points, or 0.1 percent, to 26,348. MSCI's global stock index fell by 3.8 points, or 0.3 percent, to 1,145. As oil prices rose due to the Strait of Hormuz concerns and ahead of the jobs report, Treasury yields increased.

The 10-year note yield rose 5.67 basis points to 4.674 percent. The US dollar strengthened against the Japanese yen, gaining 0.44 percent to 158.45 yen, marking its third consecutive day of gains following a dip to a 52-week low of 155.20 on Monday.