U.S. stocks declined sharply Thursday, with the Dow Jones Industrial Average shedding 200 points after two days of gains, as investors reacted to gloomy new data on the housing sector and the job market.
“Jobless claims surged and housing continues to slump. This is not good news for the economy and has caused the fear trade to come back,” said Kevin Giddis, managing director, Morgan Keegan & Co.
The economic news “provided a backdrop for the sell-off,” said Paul Nolte, director of investments at Hinsdale Associates.
The Dow Jones Industrial Average dropped 205.67 points, or 1.8%, to 11,426.71, with 24 of its 30 components trading lower. Pacing the decliners, General Motors Corp. shares tumbled 12%.
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