04:22 PM EDT, 07/31/2025 (MT Newswires) -- US benchmark equity indexes closed mostly lower on Thursday, after gains in the second-quarter employment cost index exceeded forecasts while initial jobless claims increased.

The Nasdaq was unchanged at 21,122.45 while the S&P 500 fell 0.4% to 6,339.39. The Dow Jones Industrial Average declined 0.7% to 44,130.98. Among sectors, communications led the gainers while healthcare paced the decliners.

US Treasury yields were mixed, with the 10-year rate decreasing 0.4 basis points to 4.38% and the two-year rate gaining 0.8 basis points to 3.96%.

September West Texas Intermediate crude oil fell 0.8% to $69.42 a barrel on Thursday.

In economic news, initial jobless claims rose to 218,000 in the week ended July 26 from 217,000 in the previous week, compared with expectations for 224,000 in a survey of analysts compiled by Bloomberg. The gain followed declines in the prior six weeks, according to the Labor Department.

The employment cost index rose by 0.9% in Q2, the same as in the previous quarter, reflecting a 1% increase in wages and a 0.7% gain in benefits costs.

The personal consumption expenditures price index rose 0.3% sequentially in June, as expected, lifting the year-over-year rate to 2.6% from 2.4%, the Bureau of Economic Analysis reported. The June print, which is higher than May's 0.2%, is the biggest since April, according to a note from Stifel.

The core PCE price index, the Fed's preferred inflation gauge that excludes the more volatile food and energy prices, climbed 0.3% in June, as expected, after a 0.2% gain in May. The year-over-year rate remained at 2.8%.

In company news, EBay ( EBAY ) shares were up 18%, the top gainer on the S&P 500. The company's Q2 non-GAAP earnings and revenue exceeded the Street's estimates.

C.H. Robinson Worldwide ( CHRW ) was the second-top gainer on the S&P 500, up 18%. The company posted better-than-expected Q2 adjusted earnings while revenue fell year-over-year.

Align Technology ( ALGN ) shares sank 37%, the worst S&P 500 performer, after Morgan Stanley downgraded the stock to equalweight from overweight and cut its price target to $154 from $249. Separately, some analysts also cut their price targets, including HSBC to $140 from $180, Stifel to $200 from $275, and Piper Sandler to $190 from $250.

Gold declined 0.3% to $3,344.30 per troy ounce, and silver was down 2.6% to $36.77 per troy ounce.