All three of the major U.S. stock indexes were lower, while a global stock index also was down.
The Dow Jones Industrial Average .DJI fell 374.38 points, or 0.69%, to 53,974.74, the S&P 500 .SPX fell 15.36 points, or 0.20%, to 7,708.09 and the Nasdaq Composite .IXIC fell 8.37 points, or 0.03%, to 26,355.07.
MSCI's gauge of stocks across the globe .MIWD00000PUS fell 4.46 points, or 0.39%, to 1,145.08.
The pan-European STOXX 600 .STOXX index rose 0.16% and hit another record high, driven by media and telecoms stocks.
Yields and currencies rise
U.S. data showed that the number of Americans filing claims for unemployment benefits increased slightly last week, while layoffs dropped to a two-year low in July, consistent with a stable labor market.
The claims data have no bearing on the Labor Department's closely watched employment report for July, scheduled to be released on Friday.
Many economists and traders are still expecting the U.S. central bank to raise interest rates next month unless inflation improves.
The yield on benchmark U.S. 10-year notes US10YT=RR rose 5.06 basis points to 4.668%, from 4.617% late on Wednesday.
The U.S. dollar rose against the Japanese yen, helped by safe-haven positioning.
The dollar index =USD, which measures the greenback against a basket of currencies including the yen and the euro, rose 0.31% to 99.97, with the euro EUR= down 0.28% at $1.1519.
Against the yen JPY=, the dollar strengthened 0.44% to 158.43.
The yen gained after the U.S. and Japanese governments intervened in the market on Friday.
Oil prices rise on Iran news
U.S. crude CLc1 rose 3.39% to $77.78 a barrel and Brent LCOc1 rose to $82.72 per barrel, up 4.12% on the day. Higher oil prices are a negative for consumers and the economy.
"It's better that the strait is open than it is not. But the longer that this back and forth goes on, the more I think it weighs on inflation expectations, it'll weigh on growth," said Will Compernolle, macro strategist at FHN Financial.
Stocks ease ahead of jobs data
Most major stock indexes eased on Thursday ahead of Friday's key U.S. jobs report, while oil prices jumped on the latest developments in Iran.
Iran's semi-official Fars news agency reported, citing a lawmaker, that an Iranian parliamentary committee is reviewing a preliminary bill that would bar U.S., Israeli and other "hostile" vessels from transiting the Strait of Hormuz.
The draft bill would impose fines of up to 20% of a ship's cargo value for violations of the proposed restrictions.
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