NEW YORK – A slump in oil prices weighed on the stock market Thursday, pushing the Standard Poor’s 500 index to its third straight loss.
The SP 500 fell three points, or 0.2 percent, to 1,997.65, closing below 2,000 for the first time since Aug. 29.
The Dow Jones industrial average fell almost 9 points, or 0.1 percent, to 17,069.58. The Nasdaq composite dropped 10.28 points, or 0.2 percent, to 4,562.29.
Stocks had started the day higher after the European Central Bank surprised investors by announcing that it had cut its benchmark interest rate to a record low and planned to purchase asset-backed securities in an effort to stimulate the region’s ailing economy.
The gains didn’t hold, though, and the market fell back during afternoon trading, as the falling price of oil pushed energy stocks lower. Oil closed the day down 1.1 percent, at $94.45 a barrel, dropping after government data showed that U.S. supplies fell less than expected last week.
Traders also may have been reluctant to place big bets ahead of Friday’s closely watched government jobs report.
Stocks have made a sluggish start to September, historically the worst month for the market, after surging in August.
“The market did respond to the ECB news this morning and certainly to the good economic news, but there are definite signs that this market is stretched a bit,” said Peter Cardillo, chief market economist at Rockwell Global Capital.
Some analysts were expecting the ECB to say it was preparing a new stimulus program, but most did not expect an announcement this week.
The ECB said it had trimmed its benchmark interest rate to 0.05 percent, from a previous record low of 0.15 percent. In a news conference, ECB president Mario Draghi also said the bank would start purchases of private-sector financial assets in October, a program that aims to make credit cheaper, helping investment and growth at a time when the economy of the 18-country eurozone has stalled.
In the U.S., services firms expanded in August at the fastest pace on record. The Institute for Supply Management said Thursday that its services index rose to 59.6 last month, from 58.7 in July, the highest figure recorded since the measure was introduced in January 2008.
Among stocks making big moves, PVH was the biggest gainer in the SP 500. The company, which owns the Calvin Klein and Tommy Hilfiger brands, surged $11.25, or 9.6 percent, to $128.30, after reporting earnings that exceeded the expectations of Wall Street analysts.
Gold closed down $3.80, or 0.3 percent, at $1,266.50 an ounce.