US stock indexes, including the S&P 500, Dow Jones, and Nasdaq 100, closed lower on Thursday due to a cooling labor market. Challenger reported the most job cuts in October in over 20 years. Semiconductor stock weakness also weighed on the market.

Bond yields fell on Thursday, with the 10-year T-note yield dropping, signaling potential Fed rate cuts. Strong corporate earnings are supportive, with 81% of S&P 500 companies beating Q3 expectations.

The US Supreme Court questions the legality of Trump’s reciprocal tariffs, with lower courts ruling them illegal. If upheld, the US may need to refund over $80 billion in tariffs. Q3 earnings season continues positively, but profits are expected to increase less than before.

European bond yields declined, with Germany and the UK seeing drops. Eurozone retail sales fell unexpectedly, while German industrial production was weaker than expected. The ECB notes resilience in the European economy and positive inflation news.

Several US stocks, including Elf Beauty and Duolingo, saw significant declines, while Datadog and Coherent gained. The government shutdown continues to impact the US economy, with potential for further interest rate cuts. Overseas markets had mixed results on Thursday.

Read more at Nasdaq: Stocks Slide on Signs of a Cooling Labor Market