MARKET SNAPSHOT

U.S. stocks ended broadly lower as investors were cautious in the absence of economic data during the government shutdown. Treasury markets had another calm day and yields rose for the second consecutive day as labor data went unpublished. Gold and silver fell on profit taking as the dollar continued to strengthen. Oil prices declined amid the possibility of a peace deal in the Middle East.

MARKET WRAPS

EQUITIES

Markets took a breather on Thursday, with investors taking profits and riskier assets pulling back after the sharp rallies of recent weeks.

The S&P 500 declined 0.3% and the tech-focused Nasdaq composite retreated 0.1% after both indexes closed at all-time highs on Wednesday. The Dow Jones Industrial Average lost 0.5%, or 243 points.

The shutdown, now well into its second week, has started to disrupt businesses, with some companies facing payment delays and considering layoffs. It is also delaying crucial economic data releases, including September's jobs report, that could affect the Federal Reserve's monetary policy. Alternative jobs data from Wall Street firms have indicated a cooling U.S. labor market.

"When labor markets start to get weak, that does cause equity drawdowns once it reaches a certain point," said Matt Stucky, chief portfolio manager of equities at Northwestern Mutual Wealth Management. "I don't think we're there yet, but that's a risk factor."

Earlier Thursday, China's stock market saw gains across major indexes, with the Shanghai Composite Index rising 1.3%, the Shenzhen Composite Index increasing 1.2%, and the ChiNext Price Index closing 0.7% higher.

Hong Kong's Hang Seng Index, however, closed 0.3% lower.

Led by gains in technology and electronics stocks, Japan's Nikkei Stock Average ended the trading day 1.8% higher.

Stocks in Australia rose, as the S&P/ASX 200 Benchmark Index rose 0.2%.

Stocks in New Zealand were flat, as the S&P/NZX 50 Index held steady.

COMMODITIES

Oil futures lost ground as a U.S.-mediated deal seeking to end the Israel-Hamas war in Gaza took some geopolitical premium out of the market.

"The immediate effect of the agreement was a reduction in fears of a regional escalation that could disrupt energy supply routes," Antonio di Giacomo of XS.com said.

"Some analysts believe this first step could pave the way for more ambitious negotiations with Iran, adding another factor of relief to crude oil prices."

Further downside risks for crude include record U.S. production, OPEC+ output increases and continuing trade tensions that could affect demand, he added.

WTI settled down 1.7% at $61.51 a barrel, and Brent fell 1.6% to $65.20.

Gold and silver futures fell in late trading, with investors seen as locking in profits from extended rallies up to new all-time highs for both precious metals.

But the selling isn't expected to turn into a new trend, said Peter Cardillo of Spartan Capital Securities. "We recommend considering purchases on further dips," said Cardillo. "

Front-month gold futures fell 2.4% to $3,946.30 a troy ounce, while silver dropped 3.7% to $46.85 a troy ounce.

TODAY'S TOP HEADLINES

U.S. Moves Ahead With Argentina Rescue as Farm Bailout Is Delayed

The U.S. has finalized crucial details of its planned rescue of Argentina, Treasury Secretary Scott Bessent said Thursday.

"Today we directly purchased Argentine pesos," Bessent said in a post on X, adding that the U.S. has also finalized plans for a $20 billion currency swap. That arrangement would give Argentina access to U.S. dollars that it urgently needs to support its rapidly weakening currency.

"The U.S. Treasury is prepared, immediately, to take whatever exceptional measures are warranted to provide stability to markets," Bessent said.

Fed's Barr Urges Caution With Further Rate Moves, Underscoring Committee's Divisions

After the Federal Reserve's initial rate cut last month, the central bank should proceed carefully with further adjustments to its policy stance, Fed governor Michael Barr said, citing concerns that prices are still rising too quickly.

Barr said Thursday that he remains worried that inflation could persist, and argued that the Fed can't be complacent about bringing inflation's pace back to the central bank's 2% target. The comments suggest Barr may be skeptical of supporting the interest-rate cuts that investors widely expect from the Fed over the rest of 2025, adding a wrinkle to the voting math on a divided policy committee.

Nominated in 2022 to join the Fed's board as its vice chair for bank supervision by former President Joe Biden, Barr has focused much of his work at the central bank on oversight of the financial system. He has voted in line with Chair Jerome Powell throughout his time at the Fed, and Barr shares his views about monetary policy less often than many of his colleagues. He stepped down at the vice chair for supervision earlier this year but remains a member of the Fed's board.

Levi Strauss Lifts Fiscal-Year Outlook After Third Quarter Sales Rise

Levi Strauss & Co. raised its fiscal-year outlook after posting higher sales in the third quarter, as the company's focus on its direct-to-consumer business gained traction among consumers.

The apparel company said Thursday it now expects annual revenue to rise 3%, after previously guiding for a 1% to 2% increase. It also lifted its adjusted earnings forecast to $1.27 to $1.32 a share, from $1.25 to $1.30 a share.

Analysts polled by FactSet projected annual revenue to grow approximately 2%, and for adjusted earnings of $1.31 a share.

PepsiCo Posts Higher Revenue, Profit Falls

PepsiCo tapped a Walmart executive to fill its top finance role as the packaged-food company aims to turn around its slowing soda and snack sales.

Also on Thursday, PepsiCo said fiscal third-quarter revenue rose, which Chief Executive Ramon Laguarta attributed to resiliency in its international business and improved momentum in its North American beverage unit.

Steve Schmitt will assume PepsiCo's CFO role effective Nov. 10, succeeding Jamie Caulfield, who plans to retire after more than three decades at the company, the company said Thursday.

Bankrupt Auto Supplier First Brands Faces Criminal Investigation

First Brands Group, the automotive supplier that collapsed into bankruptcy last month after the discovery of accounting irregularities, is facing a criminal investigation by the Justice Department, people familiar with the matter said.

Newly appointed independent directors at First Brands have said in court papers they discovered an unpaid balance of $2.3 billion and are looking into whether the company had been double-pledging its trade receivables to third-party investors. One of those trade finance firms on Wednesday sought the appointment of an examiner in bankruptcy court to trace how billions of dollars of assets had "simply vanished."