NEW YORK (CNN/Money) - U.S. stock markets tumbled early Thursday as worries about rising interest rates and oil prices took their toll.

After 10 minutes of trading, the Dow Jones industrial average (down 32.50 to 10278.45, Charts), the Standard & Poor's 500 (down 4.00 to 1117.49, Charts) index and the Nasdaq composite (down 10.70 to 1946.51, Charts) all fell, most notably the Nasdaq.

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U.S. stock markets closed mixed Wednesday, one session after the Federal Reserve indicated that interest rates will be raised sometime this year, but not immediately, since inflation and deflation risks are pretty balanced right now.

The focus has turned to when rates might rise, with investors hoping they will rise later, rather than sooner. The morning's economic reports failed to provide comfort.

The weekly jobless claims report -- released early Thursday -- showed that new claims for unemployment fell last week to 315,000, from an upwardly revised 340,000 the previous week. Economists surveyed by Briefing.com expected a drop to 335,000.

While a drop in jobless claims is a positive, investors also seemed to take it as a sign that Friday's monthly employment report will be particularly bullish. And if that's the case, that might be seen as implying that rates will rise fairly soon.

Due before the bell Friday, the monthly report is expected to show that employers added about 165,000 jobs to their payrolls in April, according to a consensus of economists surveyed by Briefing.com, after having added 308,000 new jobs the previous month. The unemployment rate is expected to hold steady at 5.7 percent, unchanged from March.

Also released Thursday morning was the initial read on first-quarter business productivity, which rose to an annual rate of 3.5 percent from a downwardly revised 2.5 percent in the fourth quarter, in line with expectations. However, the unit labor costs component rose, signaling that inflation is indeed moving back up.

Also weighing on market sentiment in the early going was the rise in oil prices. Brent crude oil futures rose 20 cents to $36.55 a barrel in London, and U.S. crude prices reached a high of $39.97 in pre-market trading. COMEX gold fell $3 to $390.80 an ounce.

Treasury prices inched lower, with the 10-year note yield rising to 4.59 percent. The dollar rose versus the yen and euro.

In international trade, Asian markets closed lower, while European markets fell at midday.