Updated from 4:05 p.m. EDTStocks managed to climb off their lows Thursday but still suffered deep losses as higher oil prices, lackluster economic news, a slew of earnings warnings and a downgrade of Yahoo! ( YHOO) put investors on edge before the release of the government's monthly employment report. The Dow Jones Industrial Average closed down 101.25 points, or 0.97%, to 10,334.23, while the S&P 500 sank 12.32 points, or 1.08%, to 1128.52 and the Nasdaq Composite lost 32.24 points, or 1.57%, to 2015.55. The 10-year Treasury note traded up 4/32 in price to yield 4.56%, while the dollar was lower against the yen and higher vs. the euro. Volume was moderate, approaching 1.5 billion shares on the New York Stock Exchange, where decliners outnumbered advancers by about 5 to 4. On the Nasdaq, over 1.7 billion shares changed hands, and decliners held close to a 2-to-1 majority. John Carey, portfolio manager at Pioneer Investments, said today's declines stemmed from a confluence of negative news hitting the wires throughout the day. "There was no one terrible event today that got people retreating," he said. "It was a combination of timing, with end-of-quarter reallocations and the prospect of a long weekend keeping people on the sidelines, and then there were a variety of other stories that got people concerned today with nothing really positive to give them a counter-balance." Spiking oil prices took a toll on the markets, with Nymex crude for August delivery closing up $1.69 at $38.74 a barrel. And Yahoo! weighed heavily on the Nasdaq after the internet giant was downgraded by Smith Barney based on valuation, sending the stock down $2.14, or 5.9%, to $34.26. In addition, the tech index was buffeted by earnings jitters sown by preannouncements in several second-tier sectors. Software integration shop Iona ( IONA) fell 46 cents, or 11.3%, to $3.62 after forecasting a wider-than-expected second-quarter loss. Contract manufacturer Amkor ( AMKR) plunged $2.39, or 29.2%, to $5.79 after saying it's selling too few high-end semiconductor assemblies. And network hardware company Emulex ( ELX) lost $2.89, or 20.2%, to $11.42 after taking guidance down for two quarters on weak OEM sales. The Philadelphia Semiconductor Index was down 3.7% and the Amex Network Index fell 4%. All but three of the 30 Dow components were in the red, with General Motors ( GM) leading the way, down $1.21, or 2.6%, to $45.38, and Hewlett-Packard ( HPQ) close behind, down 52 cents, or 2.5%, to $20.58. "I think this is still a decent market for the next couple of years because earnings are strong and the economy is growing," Carey said. "Interest rates are obviously going to be a headwind now rather than the tailwind that they've been for the last several years. The biggest risk is if rates have to go up faster than people anticipate -- if inflation proves to be a bigger problem and the Fed has to be more aggressive." Larry Wachtel, senior market analyst at Wachovia Securities, said the session's action shows that nothing has really changed after the handover in Iraq and the Fed's decision -- two events that were widely touted as watershed events for the market. "The lesson here is that there was never a magic bullet," said Wachtel. "There was no specific point in time that would take us out of this recent sluggishness. People aren't just going to jump back into stocks. They have no reason."