US markets closed lower on Thursday as investors watched for Iran’s response to a US peace proposal and assessed labor market updates and fresh earnings reports. Traders remained cautious as preliminary data released by the Labor Department showed US nonfarm business sector labor productivity rose by 0.8% in the first quarter of 2026, a slowdown from the revised 1.6% increase in the previous quarter and below market expectations of 1.4%. However, another report released by the Labor Department showed first-time claims for U.S. unemployment benefits rebounded by less than expected in the week ended May 2nd. The Labor Department said initial jobless claims rose to 200,000, an increase of 10,000 from the previous week’s revised level of 190,000. Street had expected jobless claims to climb to 205,000. Besides, the Commerce Department released a report showed Construction spending in the US rose by 0.6% month-over-month in March 2026, following a 0.2% fall in the prior month and better than the expected 0.2% increase. This marked the first increase since December last year.
Nasdaq slipped 32.74 points or 0.13 percent to 25,806.19, S&P 500 fell 28.01 points or 0.38 percent to 7,337.11 and Dow Jones Industrial Average decreased 313.62 points or 0.63 percent to 49,596.97.
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