U.S. stocks fell Thursday, as traders weighed sharp swings in stocks and rates to start the month.

The Dow Jones Industrial Average fell 346.93 points, or 1.15%, to 29,926.94. The S&P 500 lost 1.02% to 3,744.52, while the Nasdaq Composite dropped 0.68% to 11,073.31. The three stock benchmarks opened the session lower. All of the major averages are on pace to end the week more than 4% higher for their best week since June 24.

Energy was the best performing sector, gaining 1.8%. Utilities lagged, falling 3.3%.

The benchmark 10-year rate surpassed 3.8%. The 2-year yield, which is more sensitive to monetary policy changes, topped 4.2%.

Investors are anxiously awaiting the Friday jobs report, which will show how the labor market fared in September, giving the central bank another piece of information about its rate-hike campaign. Economists polled by Dow Jones expect the report will show that payrolls increased by 275,000 and that the unemployment rate remained at 3.7%. A surprise to the upside could raise concerns that the Federal Reserve will take a tougher line on inflation.

On Wednesday, data from ADP showed that the labor market remained strong among private companies in September, when businesses added 208,000 jobs, beating Wall Street estimates. But on Thursday, jobless claims were higher than expected, signaling there may be some labor market weakness.

“Once again, investors are looking for bad news to be good news,” Chris Senyek of Wolfe Research wrote in a Thursday note, adding that even if the September report is lower than expected, wage growth will likely hold up and make a pivot from the Federal Reserve unlikely.

“While stocks are currently prone to big upside rips, we strongly believe that our intermediate-term bearish base case remains intact,” he added.

Wall Street started the week on a high note, with the S&P 500 staging its biggest two-day rally since 2020. Stocks fought to keep the winning streak going Wednesday but ultimately fell short. The Dow closed about 42 points lower, or 0.14%. The S&P 500 and the Nasdaq Composite slid 0.20% and 0.25%, respectively.

Lea la cobertura del mercado de hoy en español aquí.