Dow Snaps Win Streak With 464-Point Drop as Oil Jumps Ahead of Jobs Report

Stocks pulled back from record territory on Thursday as a flare-up in geopolitical risk pushed oil prices higher and rekindled inflation worries. The Dow Jones Industrial Average fell 464 points, or 0.9%, to close at 53,885, snapping its record-setting win streak, while the S&P 500 slipped 0.2% to 7,709.96.

Treasury yields rose alongside crude, pressuring rate-sensitive corners of the market a day after yields had eased on optimism around a potential Hormuz shipping deal. Energy names held up better than the broader tape as oil gained.

Attention now turns to Friday's July jobs report, which investors are watching closely for confirmation that the labor market remains soft enough to keep rate-cut expectations intact without signaling a sharper slowdown.