12:51 PM EST, 12/05/2024 (MT Newswires) -- US equity indexes consolidated near record highs, reflecting a cautious mood among investors ahead of November's nonfarm payrolls, a key metric for the Federal Reserve in its upcoming policy formulation.

The S&P 500 rose 0.1% to 6,092.9 after midday on Thursday. The index is up almost 27.6% this year, versus its 2013 gain of 29.6%, which is the biggest annual gain since the beginning of this century, according to a note from Deutsche Bank. The Nasdaq Composite climbed 0.2% to 19,783.3. The S&P 500 and the Nasdaq made fresh intraday record highs earlier in the session.

The Dow Jones Industrial Average fell 0.3% to 44,899.5, trading close to its all-time peak on Wednesday.

Consumer discretionary was the top gainer intraday, while materials led decliners.

Federal Reserve Chairman Jerome Powell reportedly said Wednesday the US economy is strong, potentially allowing the Federal Open Market Committee to be cautious while easing monetary policy. Following those comments at the New York Times DealBook Summit, the probability of a 25 basis point interest-rate cut on Dec. 18 stood at 68% as of Thursday afternoon compared with 78% a day ago, according to the CME Group's FedWatch Tool.

The remaining likelihood is the Fed will pause its easing cycle, which began in September. This outcome, if realized, is unlikely to go down well with investors, who now await November's nonfarm payrolls on Friday as the Fed is also watching this metric closely after kicking off its easing cycle. "After a disappointing rise of just 12k last month, payrolls are expected to show a more sizable gain of 215k in November, potentially marking a two-month high," according to a Stifel note Thursday.

Treasury yields were mixed intraday, with the US 10-year little changed at 4.18% while the two-year climbed 3.1 basis points to 4.15%.

In economic news Thursday, US initial jobless claims rose to 224,000 in the week ended Nov. 30 from an upwardly revised 215,000 in the previous week, compared with expectations for 215,000 in a survey of analysts compiled by Bloomberg. The four-week moving average rose by 750 to 218,250 after declines in the previous five weeks, the US Labor Department said Thursday.

Outplacement firm Challenger, Gray & Christmas said Thursday that companies planned to cut 57,727 jobs in November, up from 55,597 in October and 45,510 a year ago. The highest layoff counts in November were in the automotive and technology sectors.

"The Automotive industry is currently experiencing significant challenges, including potential tariffs affecting US automakers with overseas factories, intensifying competition from Chinese electric vehicle manufacturers, and shifts in government subsidies for EVs," said Andrew Challenger, the company's senior vice president.

West Texas Intermediate crude oil futures slipped 0.2% to $68.38 a barrel, giving up gains from earlier in the session.

OPEC+, the world's biggest cartel of crude oil producers, agreed to extend the start of returning 2.2 million barrels per day of voluntary production cuts to market until April instead of January, matching market expectations. The group plans to extend the return over 18 months instead of a year.

Gold dropped 1% to $2,650.32 an ounce, and silver declined 1.1% to $31.58 an ounce.