NEW YORK, March 26 (Xinhua) -- U.S. stocks accelerated their losses on Thursday as conflicting messages from the United States and Iran fueled uncertainty regarding the war.
The Dow Jones Industrial Average fell 1.01 percent to 45,960.11. The S&P 500 sank 1.74 percent to 6,477.16. The Nasdaq Composite Index shed 2.38 percent to 21,408.08.
Eight of the 11 primary S&P 500 sectors ended in red, with communication services and technology leading the laggards by dropping 3.46 percent and 2.74 percent, respectively. Energy and utilities added 1.57 percent and 0.23 percent, respectively.
Financial markets continued to be heavily influenced by the hostilities involving the United States, Israel and Iran. Both Tehran and Tel Aviv launched military strikes on Thursday amid growing international warnings about the conflict's severe economic costs.
The involved parties remain deadlocked over a potential ceasefire. U.S. President Donald Trump escalated his rhetoric during the day, warning Iran to "get serious" and reach an agreement before it becomes "too late." However, equities managed to briefly pare some of their steep morning losses following reports that Iran had formally responded to a U.S. truce proposal.
Geopolitical volatility drove global oil prices higher again. International benchmark Brent crude futures held above 108 U.S. dollars per barrel, while U.S. benchmark West Texas Intermediate advanced past 94 dollars per barrel.
Investors are also closely assessing how heavily the Federal Reserve will weigh the sudden oil price spike during its upcoming monetary policy deliberations.
On the economic data front, the U.S. Bureau of Labor Statistics reported Thursday that initial claims for state unemployment benefits totaled 210,000 for the week ending March 21, matching market expectations.
"We expect the unemployment rate to rise 0.2 percentage point in total to 4.6 percent by the third quarter, partly because of this impact from the oil shock and partly because job growth is already running at a pace that we think is a bit too slow to keep up with labor supply growth," Goldman Sachs economist Pierfrancesco Mei wrote in a note.
Meanwhile, in the bond market, the yield on the benchmark 10-year U.S. Treasury note rose to 4.42 percent, further contributing to the pressure on equities.
In corporate developments, shares of most of the "Magnificent Seven" technology giants finished the session lower.
Beyond the technology sector, furniture manufacturer MillerKnoll saw its stock plummet 22.37 percent after issuing weak current-quarter financial guidance. The Michigan-based company explicitly attributed the anticipated downturn to the direct impacts of the Middle East conflict, citing expectations of minimal shipments to the region and significantly higher logistical costs.
