Wall Street Indexes Decline Ahead of Crucial US Employment Data

Market Caution Prevails Before NFP Release

Major Wall Street indexes opened lower on Thursday as investors adopted a cautious stance ahead of the critical US Non-Farm Payroll (NFP) report scheduled for release on Friday. The Dow Jones Industrial Average fell 145.9 points or 0.30% to 48,850.17 at the opening. Similarly, the S&P 500 index dropped 6.8 points, or 0.10%, to 6,914.11, while the Nasdaq Composite declined 35.4 points, or 0.15%, to 23,548.884.

Defense Sector Gains Attention

The defense sector captured investor interest following statements made by US President Donald Trump regarding the proposed military budget for 2027. Trump suggested that the budget should be $1.5 trillion, significantly higher than the $901 billion approved by Congress for 2026. This announcement led to gains in defense stocks: RTX rose 3.2%, Lockheed Martin surged 6.7%, Northrop Grumman climbed 7.9%, and Kratos Defense jumped 11.6%.

Market Sentiment and Outlook

The cautious market sentiment reflects investor eagerness to assess the upcoming NFP report, a key indicator of the US labor market's health. The report's outcome is expected to influence market expectations regarding future monetary policy decisions by the Federal Reserve. As such, Thursday's trading activity was characterized by a wait-and-see approach among investors, with many holding back until the release of the critical employment data.