04:29 PM EST, 12/05/2024 (MT Newswires) -- US benchmark equity indexes retreated from Wednesday's record closing levels as traders parsed the latest labor market data ahead of the official jobs report for November.

The Dow Jones Industrial Average fell 0.6% to 44,765.7 Thursday, while the S&P 500 and the Nasdaq Composite dropped 0.2% each to 6,075.1 and 19,700.3, respectively. Materials saw the steepest decline among sectors, while consumer discretionary led the gainers.

In economic news, weekly applications for unemployment insurance in the US rose, while continuing claims declined, the Department of Labor said.

US-based employers cut 57,727 jobs last month, up 3.8% from October and rising 27% annually, Challenger Gray & Christmas said.

On Friday, the Bureau of Labor Statistics is expected to report that the US economy added 215,000 nonfarm jobs last month, which would mark a sharp acceleration from a 12,000 gain posted for October, according to a Bloomberg poll.

A 215,000 print would potentially mark a two-month high, Stifel said in a note to clients.

The US trade deficit narrowed sharply in October as imports fell more than exports, government data showed.

"Despite the marked decline in October, we expect imports to outpace exports in (the fourth quarter), as investment in data centers and semiconductors supports capital goods imports and as retailers continue to build out inventories," Oxford Economics said.

On Wednesday, Federal Reserve Chair Jerome Powell reportedly said the US economy is strong, potentially allowing policymakers to be cautious with interest rate cuts.

The US two-year yield rose 2.3 basis points to 4.14% Thursday, while the 10-year rate was little changed at 4.18%.

In company news, Synopsys ( SNPS ) shares slumped 12%, the worst performer on the S&P 500 and the Nasdaq. Late Wednesday, the software company issued a downbeat full-year revenue outlook despite reporting fiscal fourth-quarter results above the Street's expectations.

Uber Technologies ( UBER ) saw the second-steepest decline on the S&P 500, down 9.6% Thursday.

Brown-Forman (BF.A, BF.B) reiterated its full-year outlook, saying it continued to expect its performance to accelerate in the second half of the year. The wine and spirits maker's class B shares surged nearly 11%, the top gainer on the S&P 500. Its class A shares jumped 12%.

Tesla (TSLA) was the second-best performer on the S&P 500 and the Nasdaq, up 3.2%, as BofA Securities raised its price target on the electric vehicle maker's stock.

West Texas Intermediate crude oil fell 0.2% to $68.44 a barrel Thursday. Certain members of the Organization of the Petroleum Exporting Countries and its allies extended oil production cuts in a move that Rystad Energy said would lower projected supply growth for next year by roughly 1 million barrels a day.

"The announcement makes (it) crystal clear that the group is worried about both a potential supply glut and a lack of compliance with production targets among member countries," Rystad Energy said.

Gold dropped 0.8% to $2,655.20 per troy ounce, while silver declined 0.2% to $31.87 per ounce.