MARKET SNAPSHOT

Stocks slipped from record levels and Treasury yields were mostly higher after September inflation slowed a little less than expected while layoffs seemed to be picking up. Oil prices jumped as the market again turned jittery about Israel's response to an Iranian missile attack last week. Gold prices gained as the dollar weakened.

MARKET WRAPS

EQUITIES

U.S. stocks declined after a hotter-than-expected inflation report sparked questions about the Fed's next move.

The consumer-price index showed prices rose 2.4% in the 12 months through September, running slightly hotter than expectations for a 2.3% rise. Annual core inflation also marginally overshot forecasts, with prices excluding volatile food and energy up 3.3%. A separate report showed a modest but unexpected uptick in weekly jobless claims.

The S&P 500 fell 0.2%, and the Dow industrials declined 0.1%. The Nasdaq Composite slipped less than 0.1%.

"With the inflation data over the last few months moving in the right direction, the focus has shifted to the state of the labor market," said Mona Mahajan, senior investment strategist at Edward Jones. "The labor market remains front and center in the investor's mind as the key driver for the Fed going forward."

Earlier Thursday, Chinese shares closed mixed as investors look to Saturday's press conference held by the Ministry of Finance for signs of further stimulus. Economists are watching for the size and wording around additional fiscal measures to boost the country's economy.

The benchmark Shanghai Composite Index gained 1.3% and Shenzhen Composite Index dropped 0.4%. ChiNext Price Index lost nearly 3%. Conversely, Hong Kong's Hang Seng Index jumped 3.0%.

Japan's Nikkei Stock Average rose 0.3%, tracking Wall Street's solid gains overnight.

Australia's benchmark S&P/ASX 200 index added 0.4% as investors got their first chance to trade Rio Tinto's locally listed stock since it unveiled an agreed takeover deal for Arcadium Lithium.

New Zealand's NZX-50 index shed 0.2%, holding on to most of the previous day's big gains that followed an outsize cut to interest rates.

COMMODITIES

Oil futures finished with a gain, prompting prices to turn higher for the week, supported by continued worries over the potential for a more direct confrontation between Israel and Iran that could threaten Middle East crude flows.

Upside remained somewhat limited, however, by concerns over demand from China, the world's largest crude importer, and prospects for ample supply.

West Texas Intermediate crude for November delivery rose 3.6% to $75.85 a barrel on the New York Mercantile Exchange. December Brent crude climbed by 3.7% to $79.40 a barrel on ICE Futures Europe.

"The conflict in the Middle East remains a concern, particularly if any military action impacts production or transport of crude," said Colin Cieszynski, portfolio manager and chief market strategist at SIA Wealth Management. "Worries have cooled a bit since nothing major happened on Monday, but that could change at any time without warning."

Front month Comex gold for October delivery gained 0.6% to settle at $2620.60 per troy ounce.

"Geopolitical tensions and the anticipation of a potential further escalation could bolster gold prices as demand for safe-haven assets grows," said Ruben Ferreira of FlowCommunity.

TODAY'S TOP HEADLINES

Inflation Continues Its Bumpy Decline With Mixed September Reading

U.S. inflation eased to a new three-year low but is cooling more slowly than expected, new data showed.

The consumer-price index rose 2.4% from a year earlier in September, the Labor Department said Thursday, after rising 2.5% in August. That was higher than the 2.3% rise that economists polled by The Wall Street Journal had expected.

Core prices, which exclude volatile food and energy items, climbed 3.3% over the previous 12 months, slightly hotter than the 3.2% rise in August. That was also above expectations.

Jobless claims surge to highest level in more than a year

The numbers: The number of Americans who applied for unemployment benefits surged by 33,000 to 258,000 in the week that ended Oct. 5, the Labor Department said Thursday. This is the highest level of initial claims since early August 2023.

Economists polled by the Wall Street Journal had estimated new claims would rise by 5,000 to 230,000.

Key details: The four-week moving average of claims rose by 6,750 to 231,000.

Airstrikes Hit Sites in Central Beirut Following Israel's Evacuation Orders

A pair of airstrikes hit at least two buildings in densely populated areas of central Beirut on Thursday evening, according to Lebanese state media, marking the deadliest strikes in the heart of the capital during Israel's offensive against Hezbollah.

The strikes, at around 7:45 p.m. local time, sparked fires that sent dark clouds of smoke rising above the city's skyline. One of the strikes blew out two floors of a residential building, according to live footage aired by a Lebanese broadcaster.

Ambulances with sirens blaring sped through central Beirut. The state-run National News Agency said the strikes were in the Al-Nuwairi and Ras Al-Nabaa areas. Lebanon's Health Ministry said 22 were killed and 117 wounded, in an initial toll.

TD Bank Agrees to $3 Billion in Penalties and Growth Restrictions in U.S. Settlement

TD Bank agreed to pay more than $3 billion in penalties and accepted limits on its growth in the U.S. as part of a settlement Thursday with regulators and prosecutors over charges it failed to properly monitor money laundering by drug cartels and other criminal groups.

As part of the agreement, the bank's primary U.S. regulator, the Office of the Comptroller of the Currency, imposed an asset cap barring the bank's retail business from growing above its current level of assets in the U.S.

TD's U.S. entity also pleaded guilty to criminal charges to resolve a Justice Department investigation.

Activist Accuses Pfizer of Pressuring Former Executives

The fight between Starboard Value and drug giant Pfizer took an unusual, bitter turn Thursday.

Hours after two former top Pfizer executives said they would no longer participate in Starboard's activist campaign, the investor accused the drugmaker of pressuring the executives to remain loyal to their longtime employer.

Starboard called on Pfizer to conduct an investigation into the withdrawals of former Chief Executive Ian Read and ex-Chief Financial Officer Frank D'Amelio.