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The S&P 500 fell Thursday, halting three straight days of closing records, as investors digested a slew of earnings and labor market data, a day ahead of the nonfarm payrolls report.

At 4:00 ET (20:00 GMT), the Dow Jones Industrial Average was down 248 points, or 0.6%; the S&P 500 index fell 0.2%; while the NASDAQ Composite was also down 0.2%.

Jobless Claims Surprises to Upside Ahead of Key Labor Market Report

US initial jobless claims rose to 224,000 in the week ended Nov. 30 from an upwardly revised 215,000 the prior week, compared to economists' expectations of 215,000.

Despite the rise in weekly jobless claims, expectations remain that the labor market is strong and will rebound following October's weather-related hit to job gains.

Nonfarm payrolls due Friday are expected to have increased by just over 200,000 jobs in November, after rising by only 12,000 in October, the lowest number since December 2020.

"We don’t think the Friday jobs report will forestall a 12/18 rate cut, but it (and a hot CPI on 12/11) could certainly cause Powell and the supplemental to shift in a hawkish direction later this month," Vital Knowledge noted on Thursday.

Federal Reserve Chair Jerome Powell pointed to strength in the US economy, suggesting the Fed could be more cautious in considering further easing.

Retail Earnings Continue

There are further quarterly earnings to digest, particularly in the retail sector.

Dollar General (NYSE:DG) gave up gains to close just above the flatline after reporting third-quarter revenue that surpassed expectations, while trimming the upper end of its annual profit forecast due to hurricane-related expenses.

Kroger (NYSE:KR) stock rose 1% after reporting third-quarter revenue that missed analyst estimates. In contrast, American Eagle Outfitters (NYSE:AEO) stock slumped 14% after cutting its target for annual comparable sales growth, hinting at erratic apparel demand during the critical holiday season.

Five Below (NASDAQ:FIVE) stock rose more than 10% after reporting better-than-expected third-quarter results, raising its full-year outlook, and announcing a new CEO.

American Airlines (NASDAQ:AAL) stock soared nearly 17% after raising its adjusted profit guidance for the current quarter, benefiting from strong travel demand.

Bitcoin Scales $100K for First Ever as Crypto Enthusiasm Continues

Bitcoin (BitfinexUSD) surged above $100,000 for the first time, reaching a high of $104,000 before paring some gains, as optimism about a pro-crypto Trump administration attracts bullish bets.

President-elect Trump nominated crypto advocate Paul Atkins as SEC Chair, fulfilling his promise to make the U.S. the crypto capital of the world.

Analysts suggest Atkins' tenure could end the era of "regulation by enforcement," potentially allowing innovation in the blockchain industry to flourish, with bitcoin potentially hitting a cycle-high of $200,000 in late 2025.

However, crypto-related stocks, including Coinbase Global Inc (NASDAQ:COIN), MicroStrategy Incorporated (NASDAQ:MSTR), and Marathon Digital Holdings Inc (NASDAQ:MARA), did not benefit from bitcoin's recent surge.

(Peter Nurse, Ambar Warrick contributed to this article.)