Stocks Ended Down, Led by Energy and Materials

U.S. stocks closed lower on Thursday, led by declines in energy and materials shares, as oil prices dropped to their lowest levels in nearly seven years. The Dow Jones Industrial Average dropped 253.25 points, or 1.43%, to 17,495.84. The S&P 500 fell 31.18 points, or 1.50%, to 2,041.89. The Nasdaq Composite was down 68.58 points or 1.35%, to 5,002.55.

The number of Americans filing for unemployment benefits last week fell from a five-month high, suggesting sustained labor market healing that could lead to further Federal Reserve interest rate hikes next year. Initial claims for state unemployment benefits dropped 11,000 to a seasonally adjusted 271,000 for the week ended Dec.12, the Labor Department said on Thursday.

Oil futures settled lower Thursday, as recent data showing an unexpected climb in U.S. crude supplies and strength in the dollar. January WTI crude fell 57 cents, or 1.6%, to settle at $34.95 a barrel on the New York Mercantile Exchange.

Shares of Red Hat Inc. RHT, +0.11% gained in Thursday’s extended session after the open-source software provider posted results that beat analysts’ expectations. Red Hat reported fiscal third-quarter earnings edged down to $46.9 million, or 25 cents a share, from $47.9 million, or 26 cents a share, a year earlier.