WASHINGTON (dpa-AFX) - Stocks turned in a lackluster performance early in the session on Thursday but came under pressure over the course of the trading day. The major averages all moved to the downside, although selling remained relatively subdued.
The major averages finished the day off their lows of the session but still in the red. The Dow slid 313.62 points or 0.6 percent to 49,596.97, the S&P 500 fell 28.01 points or 0.4 percent to 7,337.11 and the Nasdaq edged down 32.75 points or 0.1 percent to 25,806.20.
Stocks showed a lack of direction early in the day as traders remain optimistic about a peaceful end to the conflict in the Middle East but may want to see more tangible results from U.S.-Iran negotiations before making big bets.
President Donald Trump said Wednesday that the U.S. and Iran have had 'good talks over the last 24 hours' and expressed confidence a deal could be reached in the coming days.
A report from Axios said U.S. officials expect Iran's response to a one-page memorandum of understanding to end the war within the next 24-48 hours.
However, selling pressure picked as crude oil prices saw a substantial turnaround over the course of the day, with U.S. crude oil futures jumping by more than 1 percent after plummeting by as much as 5.5 percent.
Crude oil prices bounced back after a report from CNN said Iran is attempting to force shippers to comply with a new protocol for transiting the Strait of Hormuz.
CNN said it has seen an application form issued by Iran's newly created Persian Gulf Strait Authority that must be completed by all transiting vessels to ensure safe passage.
With the document seen as part of efforts by Iran to formalize control over the waterway, the report has led to renewed concerns about a re-escalation of the Middle East conflict.
In U.S. economic news, a report released by the Labor Department showed first-time claims for U.S. unemployment benefits rebounded by less than expected in the week ended May 2nd.
The Labor Department said initial jobless claims rose to 200,000, an increase of 10,000 from the previous week's revised level of 190,000.
Economists had expected jobless claims to climb to 205,000 from the 189,000 originally reported for the previous week.
Sector News
Computer hardware stocks moved sharply lower over the course of the session, with the NYSE Arca Computer Hardware Index tumbling by 2.9 percent after ending Wednesday's trading at a record closing high.
Significant weakness was also visible among semiconductor stocks, as reflected by the 2.7 percent slump by the Philadelphia Semiconductor Index.
Energy stocks also saw considerable weakness despite the rebound by the price of crude oil, while software and airline stocks showed strong moves to the upside.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Thursday. Japan's Nikkei 225 Index soared by 5.6 percent, while Hong Kong's Hang Seng Index jumped by 1.6 percent.
Meanwhile, the major European markets moved to the downside on the day. While the U.K.'s FTSE 100 Index tumbled by 1.6 percent, the French CAC 40 Index and the German DAX Index slumped by 1.2 percent and 1.0 percent, respectively.
In the bond market, treasuries came under pressure over the course of the session after seeing early strength. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, climbed 3.6 basis points to 4.392 percent after hitting a low of 4.314 percent.
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