A terrible day for the stock market - WALB.com, Albany News, Weather, Sports

A terrible day for the stock market

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New York - Worries about the state of the economy in the U.S. and around the world slammed stocks on Thursday, driving the Dow to close down more than 500 points and sending the broader S&P 500 index well into correction territory.

The Dow Jones industrials average ended down more than 4 percent. The broader S&P 500 index was down around 10 percent from its May high. The market's so-called "fear index," the CBOE Volatility Index (VIX), rose above 30 in its biggest daily percentage move since May 2010.

"People are throwing in the towel because they can't find relief on any front. There are a lot of worries about the economy," said Milton Ezrati, market strategist at Lord Abbett Co. in Jersey City, New Jersey, which manages $110 billion in assets.

Analysts predicted further losses ahead, given the strong degree of pessimism in the market.

Investors are now nervously focused on the crucial monthly jobs data to be released Friday by the Labor Department. Expectations are not high.

Story: Investors flee stocks for safer ground

Nonfarm payrolls likely increased 85,000 last month, according to a Reuters survey, after rising only 18,000 in June. The unemployment rate is expected to hold steady at 9.2 percent.

Earlier, the Labor Department reported that weekly initial jobless claims totaled 400,000, less than the 405,000 that was forecast. Investors were disappointed they didn't see more improvement in the labor market gauge.

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