Stocks slid on Thursday after better-than-expected jobs data increased investors' anxiety around the state of the economy and path of interest rates.

The Dow Jones Industrial Average dropped 366.38 points, or 1.07%, to close at 33,922.26. The S&P 500 lost 0.79% to end at 4,411.59. The Nasdaq Composite dropped 0.82% to 13,679.04. Thursday's session marked the worst daily performance for the Dow and S&P 500 since May.

The three major indexes are on pace to finish the week lower with just Friday's session left in the holiday-shortened trading week. The Dow is poised for a slide of 1.4% on the week. The S&P 500 and Nasdaq, meanwhile, are on pace for weekly losses of 0.9% and 0.8%, respectively.

Private sector jobs increased by 497,000 in June, according to data from payroll processing firm ADP, in the biggest monthly gain since July 2022. June's increase was more than double the Dow Jones consensus estimate of 220,000 and far better than the downwardly revised 267,000-job addition seen in May. The 2-year U.S. Treasury yield hit a 16-year high in Thursday's session.

The ADP data, which is often unreliable and considered more volatile than other employment data, comes ahead of Friday's official June payrolls report. Economists are expecting 240,000 non-farm payrolls were added last month, a slowing from the 339,000 jobs added in May, according to Dow Jones.

However, traders may now be expecting a hotter number that leads to the Fed resuming its hiking campaign this month after a pause at the June meeting. Traders are pricing in an approximately 92% chance of a hike at the central bank's meeting later this month, according to CME Group's FedWatch tool.

"The market clearly would have preferred an in-line number," said John Lynch, chief investment officer at Comerica Wealth Management. "But because it was more than double expectations, that really ratchets up the fear factor that the Fed would have to be more aggressive."

On the other hand, job openings fell more than expected in May, according to a Labor Department report. That data could provide hope that the tight job market may be seeing at least some loosening.

JetBlue Airways tumbled more than 7% a day after the company announced it would end its partnership in the northeast U.S. with American Airlines to focus on Spirit Airlines. American shares moved 2% lower, while Spirit rose more than 1%.

— CNBC's Jeff Cox contributed reporting

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Stocks close lower

Stocks finished Thursday's session lower.

The Dow ended down 1.1%, while the S&P 500 and Nasdaq Composite finished 0.8% lower.

Thursday's losses put the indexes on pace for losing weeks. With just Friday left in the holiday-shortened trading week, the Dow is on pace to finish the week 1.4% down. The S&P 500 is on track to lose 0.9% while the Nasdaq Composite is poised to shed 0.8% on the week.

— Alex Harring

Textron shares well-positioned for a rebound, says Citi

Citi initiated coverage of aircraft maker Textron with a buy rating.

"We are constructive on revenue and earnings visibility given recent backlog growth, particularly in the company's Aviation and Bell segments," analyst Jason Gursky wrote in a Wednesday note. 

Gursky added that Textron's valuation has already priced in a recessionary environment and reduced business jet demand.

CNBC Pro subscribers can read more about the call here.

— Hakyung Kim

Friday's jobs report should be strong, economist says

Thursday's economic data releases foreshadow strength in Friday's jobs report, said Jeffrey Roach, chief economist for LPL Financial.

Roach pointed to the ADP private payroll report, job opening and turnover data and manufacturing index readings as signs that Friday's closely followed jobs report should be strong. And that could spell bad news for those hoping the Federal Reserve does not return to raising interest rates after pausing at the June meeting, he said.

"The data leading up to Friday's big employment release are pointing to another healthy jobs report," Roach said. "Unless Friday's report is much weaker than expected, the Fed will not likely change its plans to increase rates during the next regularly scheduled meeting later this month."

— Alex Harring

Stocks remain down entering final hour

Stocks remained down entering final hour, but were off session lows.

The Dow was down 1%, while the S&P 500 and Nasdaq Composite slid 0.7%. All three were down more than 1% earlier in the session.

— Alex Harring

Piper Sandler downgrades Affirm, but is more optimistic on credit card companies

Piper Sandler analyst Kevin Barker said in a note to clients on Thursday that the shifting winds of the U.S. consumer, including a potential recession and the restarting of student loan payments, will have an uneven impact on consumer finance stocks.

Piper Sandler downgraded point-of-sale lender Affirm to underweight from neutral, citing rates continuing to move higher and the student loan repayments slated to begin again in October. Shares of the company fell more than 15% on Thursday.

Meanwhile, the firm raised its price targets for Capital One and Discover Financial.

— Jesse Pound

Keurig Dr Pepper advances after Morgan Stanley ups shares to overweight

Shares rose about 1.5% after Morgan Stanley upgraded Keurig Dr Pepper to overweight from equal weight, saying that the stock's "pronounced stock underperformance" has created a buying opportunity for investors. 

"Said more simply, we don't pretend to have complete visibility in coffee, but with some of the weakness tied more to factors that don't drive long-term value, and a clear path of continued upside in US refreshment beverages, KDP's valuation looks compelling here after outsized stock underperformance," the firm said in a Thursday note

Read more about the upgrade here.

— Hakyung Kim

Stocks making the biggest midday moves

Here are some of the stocks moving in midday trading:

• Genius Sports — The stock jumped more than 22% after Genius Sports and the National Football came to an agreement on a multi-year extension of their existing strategic partnership. Genius will remain the NFL's exclusive distributor of real-time statistics.
• Affirm — Shares dropped about 14% after Piper Sandler downgraded the point-of-sale lender to underweight from neutral. The resumption of student loan payments and higher interest rates and could hurt the stock in the months ahead, the Wall Street firm said.
• Keurig Dr Pepper — The stock added 1.5% following an upgrade by Morgan Stanley to overweight from equal weight. Morgan Stanley said the stock's valuation was too low amid highly visible refreshment beverage trends.

See the full list here.

Russell 2000 on pace for worst day since April

Small cap stocks unperformed on Thursday, with the Russell 2000 last down more than 2.2% and on pace for its worst day since April 25.

For the week, the index is down 3% and headed for its worst weekly performance since March. Since the start of July, the Russell 2000 has fallen 3.1%.

Archer Aviation marked one of the biggest laggards on the index, last down 12.5% and on track to snap a six-day win streak. Should the stock close near these levels, it would mark the worst daily performance since May 12.

Joby Aviation shares slumped 12%. The stock is headed for its worst day since June. Shares have fallen 8.5% this week.

— Samantha Subin, Chris Hayes

Microsoft is only Dow stock trading higher

Only one stock of the 30 in the Dow was trading up Thursday afternoon: Microsoft.

The technology giant was up 1%. With the other 29 names trading lower, the blue-chip average was down about 1.2%.

3M, Chevron, American Express and Nike led the index lower, with all down more than 2.5%.

— Alex Harring

Dow and S&P 500 on pace for worst daily performances in more than a month

The Dow and S&P 500 are both on track to post their worst daily performances in more than a month with just hours left in Thursday's session.

The Dow's 1.3% drop places it on track for its biggest lost in a session since March 22, when the blue-chip average finished 1.6% lower.

With a slide of 1%, the S&P 500 is poised to post its worst day since May 23, when it dropped 1.1%.

— Alex Harring

Future of economy uncertain following jobs data, economic analyst says

What the future of the U.S. economy will look like remains unclear following Thursday's job data, according to Mark Hamrick, senior economic analyst at Bankrate. And a big part of the question stems from uncertainty around how the Fed will move interest rates going forward.

"The plight of the economy, including the job market, through the end of this year, remains a question," Hamrick said. "If the inflation fighting Fed feels compelled to raise interest rates further, as it has recently signaled, risks of economic contraction remain, or even grow."

— Alex Harring

Energy sector leads Thursday's losses

All 12 sectors of the S&P 500 fell in the red during Thursday's trading session, with the energy sector leading the losses.

The energy sector was down 2.6%. ConocoPhillips, Hess, Marathon Oil and Devon Energy all saw shares decline by more than 3.3%.

Materials stocks were the second-largest losers, with the sector losing 2.1%. Freeport-McMoRan shed 4.8%, while Celanese slipped 4.3%.

— Hakyung Kim

Bitcoin falls after touching a 13-month high

Bitcoin touched a 13-month high of above $31,450 on Thursday as the drumbeat for institutional bitcoin demand grew louder following comments from BlackRock CEO Larry Fink. On Wednesday he told Fox Business News that bitcoin is "an international asset" and "not based on any one currency so it can represent an asset that people can play as an alternative."

The cryptocurrency was last lower by 1% at $30,147.48, according to Coin Metrics. It gave back earlier gains after better-than-expected U.S. jobs data increased investor worries about path of interest rates.

The earlier move up was in contrast to weaker stock prices and yields. Additionally, the minutes of the Federal Reserve's June meeting, released Wednesday, showed that most officials would support more rate increases ahead. Cryptocurrency liquidity has been low for several months, continuing to exaggerate both up and down moves.

For more on what's driving bitcoin on Thursday read our full story here.

— Tanaya Macheel

Plug Power rises after Citi says shares are worth buying

Shares of green hydrogen company Plug Power rare worth buying, according to Citi.

Analyst Vikram Bagri said Plug Power is on track to achieve positive gross margins this year and aims to top 30% in gross margins by 2026. He initiated a buy and high-risk rating on the stock.

"The company's aggressive growth plans and substantial operating leverage should allow strong margin expansion," Bagri said.

CNBC Pro subscribers can click here to read more.

— Hakyung Kim

Major indexes slide more than 1%

The three major indexes were all down more than 1% in Thursday morning trading, showing the strength of the session's selloff.

The Dow slid more than 400 points, or 1.4%. The Nasdaq Composite and S&P 500 each dropped around 1.3%.

— Alex Harring

NYSE decliners lead advancers 12-1

Roughly 12 New York Stock Exchange-listed stocks fell for every advancer in early trading Thursday, as fears of even tighter Fed policy weighed on investor sentiment. Overall, 2,479 NYSE stocks were down, while 182 advanced.

— Fred Imbert

2-year Treasury yield hits highest level since 2007

The yield on the 2-year Treasury yield traded at 5.05% on Thursday, reaching levels not seen in 16 years, following the release of the latest ADP private payrolls report. It was also the first time March that the 2-year rate traded above 5%.

— Fred Imbert

Job openings decreased in May to below 10 million

Job openings fell more than expected in May, providing some hope that the labor market is loosening up, according to a Labor Department report Thursday.

The Job Openings and Labor Turnover Survey showed that listings totaled 9.82 million, down from an upwardly revised 10.32 million the month before and below the FactSet estimate of 9.9 million.

Quits rose on the month, pushing just above 4 million as the rate compared to the workforce size increased to 2.6%, up 0.2 percentage point from April.

A separate economic report released at 10 a.m. ET showed that the ISM Services index for June registered a 53.9 reading, up from 50.3 in May and better than the 51.3 estimate.

—Jeff Cox

Odds mount that fed funds will rise another half point by September

Odds that the Federal Reserve's benchmark fed funds rate will stand a half-point higher at 5.50%-5.75% by the end of its September meeting grew after Thursday's better-than-expected employment data, according to the CME Group's FedWatch tool.

Earlier, the usually volatile ADP employment survey for June nonetheless came in almost twice expectations.

Interest rate traders now see a 95% certainty the Fed will raise rates a quarter point to 5.25%-5.50% in less than threee weeks, at the July 26 meeting. Odds that rates will rise another quarter point, to 5.50%-5.75%, at the September meeting are now 28.5%, up from 18.1% Wednesday.

The Fed skips a meeting in October, but odds that rates will stand a half-point higher by the Nov. 1 meeting are now 40.1%, up from 31.6% Wednesday. There's even 8.4% odds that rates will rise three quarters of a point by the end of the November meeting.

— Scott Schnipper

Stocks open lower

The three major indexes were trading down directly following Thursday's opening bell.

The Dow lost nearly 250 points, or 0.7%, shortly after 9:30 a.m. ET. The S&P 500 and Nasdaq Composite slipped 0.9% and 1%, respectively.

— Alex Harring

Simon Property Group shares gain 1% in premarket following upgrade

Simon Property Group's stock rose 1% Thursday before the bell following an upgrade to outperform from peer perform by Wolfe Research.

Wolfe's price target of $127 implies 7.4% upside from where shares closed on Wednesday. 

"We expect internal growth to be relatively stable (~2.5% SSNOI) as share is taken from closing malls. In addition, the company is a cash engine at just ~70% AFFO payout ratio which we assume will be used to fund external growth - particularly buybacks," analyst Andrew Rosivach wrote in a Wednesday note. 

To read more about his upgrade, click here.

— Hakyung Kim

Fed's Logan says 'more restrictive' policy will be needed ahead

Dallas Federal Reserve President Lorie Logan said Thursday she was one of the central bankers who thought it would have been "entirely appropriate" to raise interest rates again at the June meeting.

However, Logan said she went along with the Federal Open Market Committee's final decision not to hike as "it can make sense to skip a meeting and move more gradually."

But she still sees higher rates ahead as the Fed fights to get inflation back down to its 2% goal.

"In this environment, the FOMC needs to make policy more restrictive so we can return inflation to target in a sustainable and timely way," Logan said in prepared remarks for a speech at Columbia University.

—Jeff Cox

Jobless claims rise, trade deficit falls

Initial jobless claims increased to 248,000 last week, though the total was only 3,000 higher than the Dow Jones estimate, the Labor Department reported Thursday. The number represented a rise of 12,000 from the previous week.

Continuing claims edged lower to 1.72 million, as both numbers pointed to a resilient labor market despite the Federal Reserve's rate-hiking campaign.

In other economic news, the U.S. trade deficit fell to $69 billion in May, just above the estimate.

—Jeff Cox

10-year Treasury yield tops 4% after strong ADP jobs data

The 10-year Treasury yield jumped above 4% after traders absorbed strong jobs data that could mean further tightening from the Federal Reserve.

The yield on the 10-year Treasury was last trading at 4.031% after jumping more than 8 basis points. The 2-year Treasury yield was last up by more than 13 basis points to 5.082%.

— Sarah Min

Private payrolls surged 497,000 in June, ADP reports

Private payrolls exploded in June, with job growth totaling 497,000 on the month, according to a report from payrolls processing firm ADP.

The total was more than double the 220,000 Dow Jones estimate and was boosted by growth of 232,000 in the pivotal leisure and hospitality sector. Construction added 97,000 while trade, transportation and utilities grew by 90,000.

The monthly total also was the highest since July 2022. May's total was revised lower to 267,000, down 11,000 from the initial estimate.

—Jeff Cox

Stocks making the biggest moves premarket

Check out the companies making headlines before the bell:

• JetBlue Airways — JetBlue Airways declined 1.3% in premarket trading after the company said it would end its partnership in the northeastern U.S. with American Airlines and focus on Spirit Airlines. Shares of American Airlines declined about 0.9%, while shares of Spirit Airlines popped 2.3%.
• Meta Platforms — The social media giant added about 2% in premarket trading after the launch of Threads, a direct competitor to Twitter. Meta CEO Mark Zuckerberg said on his Threads account early Thursday that 10 million people had signed up for the platform in seven hours after launching.
• Sweetgreen — Sweetgreen jumped more than 4% after Bank of America upgraded the stock to buy from neutral. The firm cited the salad chain's growing foot traffic, as well as its plans to automate operations.

Read the full list here.

— Sarah Min

Sweetgreen shares jump more than 4% after Bank of America upgrade

Sweetgreen shares rose 4% after Bank of America upgraded the stock to buy from neutral, citing increasing foot traffic, sustained momentum in same-store sales growth and long-term plans to automate operations. 

"Sustained y/y visits growth suggests mobility continues to improve and SG [same-store sales growth] can maintain momentum, removing a key overhang on the stock," the firm said in a Thursday note.

The stock has surged more than 52% year to date, but has traded flat over a 12-month period. 

To read more about the upgrade, click here.

— Hakyung Kim

Meta stock climbs after launch of Twitter competitor Threads

Meta Platforms stock climbed roughly 2% in premarket trading on Thursday after the launch of Threads, its rival platform to Twitter.

Threads went live on Wednesday, with Meta CEO Mark Zuckerberg and Meta seemingly seeking to sway Twitter users frustrated with Elon Musk's changes to the platform to jump ship. Meta CEO Mark Zuckerberg said on his official Threads account on Thursday that 20 million users had signed up for the platform after launching.

"While we are impressed with Threads and note Twitter has its current difficulties, not every Meta product launch has succeeded," KeyBanc analyst Justin Patterson wrote in a Thursday note. "We believe watching downloads and ultimately demographics (are these existing Twitter users or net new users to the category?) will be crucial in gauging traction."

— Brian Evans

Bank of America hikes dividend 9%

Bank of America announced on Wednesday evening that it is raising its quarterly dividend to 24 cents per share from 22 cents, an increase of about 9%.

The new payout would give Bank of America a dividend yield of 3.3%, based on its closing price of $29.08 per share on Wednesday. The change still needs to be approved by the bank's board.

Shares of Bank of America are down about 12% year to date.

— Jesse Pound

Market taking a 'glass half full' view, trader says

Tom Essaye of The Sevens Report said Thursday that the market has thus far taken a "glass half full" to most data sets and events this year.

"So it's reasonable to assume that even if data is either 'Too Hot' or 'Too Cold' the market will find a way to focus on the positive, and as such the market declines might be more modest than they otherwise might have at the start of the year," Essaye said.

— Fred Imbert

Treasury yields rise as investors look ahead to key economic reports

U.S. Treasury yields climbed on Thursday as investors awaited key economic data and assessed the interest rate outlook after the Federal Reserve's latest meeting minutes were published.

At 4:12 a.m. ET, the yield on the 10-year Treasury was trading at 3.9694% after rising by over two basis points. The 2-year Treasury was last up by more than two basis points to 4.9743%.

Yields and prices move in opposite directions and one basis point equals 0.01%.

— Sophie Kiderlin

European markets: Here are the opening calls

European equity markets are set to open marginally lower, according to IG data.

Britain's FTSE is anticipated to open six points lower at 7,433, while Germany's DAX is poised to drop 16 points to 15,908. France's CAC is forecast to fall 10 points to 7,239 and Italy's MIB is on track to drop three points to 28,279.

— Hannah Ward-Glenton

Hong Kong shares of Chinese banks fall on Goldman downgrades

Hong Kong-listed shares of Chinese banks were among the leading decliners in the Hang Seng index after Goldman Sachs reportedly downgraded its ratings for the top mainland lenders.

Goldman Sachs lowered its rating for Agricultural Bank of China to "sell" from "neutral," as well as downgrading Industrial and Commercial Bank of China and Industrial Bank from "buy" to "sell," Reuters reported.

Hong Kong listed shares of Agricultural Bank of China dropped nearly 2% while ICBC fell 2.4%. Bank of Communications fell 1.54%.

The report added that Goldman cited investor concerns over the the banks' exposure to local government debt, earnings risk as well as diverging fortunes among individual banks.

— Jihye Lee

Australia's May trade surplus climbs more than expected

Australia's trade surplus for June came in at 11.79 billion Australian dollars in May, higher than the AU$11.15 billion recorded in April.

The figure also beat expectations of economists polled by Reuters, who expected the surplus to decline to AU$10.5 billion.

Government data showed that imports of goods and services into Australia increased by 2.5% month on month in May, while exports climbed 4.4%.

— Lim Hui Jie

JetBlue falls as company ends American Airlines partnership

JetBlue shares inched lower in extended trading after the company announced it would end its alliance in the northeast U.S. with American Airlines.

The airline said Wednesday it would not appeal a U.S. judge's decision earlier this year requiring the company to end its partnership with the American after ruling that the agreement was anticompetitive.

"Despite our deep conviction in the procompetitive benefits of the NEA, after much consideration, JetBlue has made the difficult decision not to appeal the court's determination that the NEA cannot continue as currently crafted," JetBlue said in a statement, adding that it plans to devote time toward focusing on its acquisition of Spirit Airlines.

While American said it still plans to appeal the ruling. Shares moved marginally lower in after-hours trading. Spirit Airlines added about 2%.

— Samantha Subin, Leslie Josephs

Stock futures open little changed

Stock futures opened little changed on Wednesday evening.

Futures tied to the Dow Jones Industrial Average dipped 18 points, or 0.05%. S&P 500 and Nasdaq-100 futures were flat.

— Samantha Subin