U.S. markets opened lower on Thursday evening Beijing time, as investors weighed Wal-Mart's disappointing profit outlook and escalating tensions between the United States and Iran. Data showing the largest drop in U.S. weekly jobless claims since November indicated stabilization in the labor market.

The Dow Jones Industrial Average fell 86.44 points, or 0.17%, to 49,576.22; the Nasdaq Composite dropped 112.759 points, or 0.50%, to 22,640.876; and the S&P 500 declined 19.97 points, or 0.29%, to 6,861.34.

Wal-Mart's full-year earnings forecast fell short of expectations, overshadowing its better-than-expected fourth-quarter results.

Traders remained cautious as tensions between Iran and the U.S. over Iran's nuclear program pushed crude oil prices higher. West Texas Intermediate crude futures rose over 1% on Thursday, trading above $66 per barrel.

Wall Street had just concluded a positive session, largely driven by gains in the "Magnificent Seven" tech stocks and strength in financial and energy shares.

A senior global investment strategist noted, "In the coming weeks, barring surprises, markets may see a rebound in mega-cap stocks alongside a pause in the rotation and broadening theme that has dominated performance this year."

He added, "The market experienced broad-based and indiscriminate selling, and in some cases, valuations may already reflect significant disruption risks relative to current fundamentals."

The strategist also indicated that while pessimism toward the tech sector may be overblown, the prospects for the sector regaining sustainable leadership remain uncertain, as the macroeconomic environment continues to favor cyclical stocks.

On the economic data front, U.S. initial jobless claims recorded their largest weekly decline since November, signaling labor market stability.

According to the Labor Department, initial claims fell by 23,000 to 206,000 in the week ending February 14. This figure was lower than all but one economist's forecast in a survey.

Over the past year, initial claims have only dipped below 210,000 on a few occasions. Levels at this range suggest that overall layoffs remain low. The data also indicate that workers temporarily idled by severe winter storms across large parts of the U.S. in late January have returned to their jobs.

However, continuing claims, which reflect the number of people actually receiving benefits, rose to 1.87 million in the prior week, the highest since early January. The four-week moving average for initial claims, used to smooth volatility, remained largely unchanged at 219,000. Before seasonal adjustment, initial claims fell sharply, with the largest declines seen in New York, Pennsylvania, and Texas.

A preliminary report on economic indicators from the U.S. Census Bureau showed wholesale inventories rose 0.2% in December to $917.2 billion. The median forecast from eight economists was also a 0.2% increase, with estimates ranging from 0.1% to 0.3%. Retail inventories held steady at $812.0 billion. The preliminary goods trade deficit widened to $98.5 billion from $82.8 billion in the previous month. A survey of 24 economists had projected a median deficit of $86 billion, with estimates ranging from $52 billion to $90.8 billion.

The U.S. trade deficit expanded in December, capping a volatile year marked by unpredictable tax policy shifts.

Data from the Commerce Department showed the monthly goods and services trade deficit widened to $70.3 billion. The full-year deficit totaled $901.5 billion, remaining one of the largest on record since 1960.

The December trade deficit reflected a 3.6% increase in imports and a 1.7% decline in goods and services exports. A survey of economists had projected a median overall trade deficit of $55.5 billion.