02:18 PM EDT, 10/03/2024 (MT Newswires) -- US benchmark equity indexes were lower intraday while oil surged amid escalating geopolitical tensions in the Middle East.

The Dow Jones Industrial Average was down 0.7% at 41,913.4 after midday Thursday, while the S&P 500 fell 0.4% to 5,687.8. The Nasdaq Composite dropped 0.3% to 17,880.8. Among sectors, consumer discretionary saw the steepest decline, while energy led the gainers.

In response to a question by reporters Thursday whether the US would support Israeli striking Iranian oil facilities, President Joe Biden said "we're in discussion of that."

"There's nothing going to happen today," Biden said.

There have been concerns that Israel could strike Iran's oil industry in retaliation for Tehran's missile attack earlier in the week, CNBC reported.

West Texas Intermediate crude oil was soaring 4.9% at $73.55 a barrel intraday.

In economic news, two surveys painted a mixed picture of the US services sector for September, with the Institute for Supply Management's data showing that activity expanded more than expected, while S&P Global ( SPGI ) indicated a deceleration in growth.

"The ISM services index surprised to the upside in September and is yet another signal that the economy is still expanding at a brisk pace," Oxford Economics said.

On Tuesday, data from the ISM and S&P Global ( SPGI ) showed the US manufacturing sector remained in contraction territory last month amid soft demand and declining employment.

Weekly applications for unemployment insurance in the US rose more than expected, according to government data released Thursday.

US-based employers cut 72,821 jobs last month, down 4% from August and up 53% from September 2023, according to Challenger Gray & Christmas.

Data from the Bureau of Labor Statistics are expected to show Friday that the US economy added 150,000 nonfarm jobs last month, which would mark an acceleration from a142,000 gain posted for August, according to a survey compiled by Bloomberg.

The US two-year yield rose 5.4 basis points to 3.69% intraday, while the 10-year rate increased 4.7 basis points to 3.83%.

In company news, Constellation Brands' ( STZ ) fiscal second-quarter earnings beat market estimates, while revenue fell short of Wall Street expectations as the company booked a $2.25 billion noncash goodwill impairment loss in its wine and spirits business. It shares were down 4.3%, the steepest decline on the S&P 500.

Tesla (TSLA) was among the worst performers on the S&P 500 and the Nasdaq, down 3.6%. The electric vehicle maker removed its most affordable Model 3 sedan from its website's US order page in a signal that recent tariffs on Chinese imports present a "double edge sword" for US automakers, Wedbush Securities said in a note to clients.

Vistra ( VST ) shares were up 6.3%, the top gainer on the S&P 500, as RBC raised its price target on the stock to $141 from $105 while maintaining its outperform rating.

Gold was up 0.4% at $2,680.30 per troy ounce, while silver rose 1.7% to $32.47 per ounce.