U.S. stocks tumble on Europe worries, jobless claims

08:49, May 21, 2010      

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U.S. stocks suffered another heavy sell-off on Thursday as an increase in jobless claims further pressured on a market worrying about euro zone economies.

All three major indexes ended sharply lower, with Nasdaq off more than four percent. Both S&P and Nasdaq are currently 10 percent lower from the April 23 high, which means both indexes have entered correction area.

Dow lost more than 370 points, or 3.6 percent, the largest percentage drop since March 5, 2009.

Worries over European debt crisis have been weighing on the market. Germany's ban on naked short selling intensified the concerns and investors were uneasy about the possibility of Greece contagion. Fear has occupied the market, and even a rebounding euro failed to lift shares.

Meanwhile, economic data released in United States offered little comfort to investors.

The Labor Department reported that the number of workers filing new claims for unemployment benefits rose by 25,000 to a seasonally adjusted 471,000 last week, while analysts were expecting a moderate drop.

The Conference Board's index of U.S. leading economic indicators slipped 0.1 percent last month, the first decline in more than a year.

The Dow Jones industrial average plunged 376.36, or 3.60 percent, to 10,068.01. The Standard & Poor's 500 index tumbled 43. 46, or 3.90 percent, to 1,071.59 and the Nasdaq plummeted 94.36, or 4.11 percent, to 2,204.01.



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