WASHINGTON (dpa-AFX) - After closing little changed for two straight days, stocks moved sharply lower over the course of the trading session on Thursday. With the steep losses on the day, the major averages dropped to their lowest closing level in well over three months.
The major averages finished the day just off their lows of the session. The Dow plunged 739.42 points or 1.6 percent to 46,677.85, the Nasdaq tumbled 404.16 points or 1.8 percent to 22,311.98 and the S&P 500 slumped 103.18 points or 1.5 percent to 6,672.62.
The sell-off on Wall Street came amid another sharp increase by the price of crude oil, as oil prices further offset the nosedive seen on Tuesday.
U.S. crude oil for April delivery has spiked by nearly 11 percent to $96.57 a barrel but remains well off Monday's highs near $120 a barrel.
International benchmark Brent crude futures for May delivery also shot up by 9.2 percent, surging back above $100 a barrel
The extended rebound by the price of crude oil came amid reports three more foreign ships were struck in the Persian Gulf overnight, adding to concerns about transit through the strategically vital Strait of Hormuz.
Energy Secretary Chris Wright told CNBC in an interview that the U.S. Navy is 'not ready' to escort oil tankers through the strait.
Iran's new Supreme Leader Mojtaba Khamenei also said the Strait of Hormuz must remain closed as a 'tool to pressure enemy.'
In U.S. economic news, the Labor Department released a report showing first-time claims for U.S. unemployment benefits unexpectedly edged slightly lower in the week ended March 7th.
The Labor Department said initial jobless claims slipped to 213,000, a decrease of 1,000 from the previous week's revised level of 214,000.
Economists had expected jobless claims to inch up to 215,000 from the 213,000 originally reported for the previous week.
Sector News
Airline stocks extended the nosedive seen over the past two weeks, with the NYSE Arca Airline Index plummeting by 5.2 percent to its lowest closing level in well over three months.
Substantial weakness was also visible among steel stocks, as reflected by the 3.7 percent plunge by the NYSE Arca Steel Index.
Semiconductor stocks also showed a significant move to the downside, dragging the Philadelphia Semiconductor Index down by 3.4 percent.
Oil service, biotechnology and financial stocks also saw considerable, while oil producer stocks bucked the downtrend.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Thursday. Japan's Nikkei 225 Index slumped by 1.0 percent, while Hong Kong's Hang Seng Index slid by 0.7 percent.
The major European markets also moved to the downside on the day. While the French CAC 40 Index declined by 0.7 percent, the German DAX Index fell by 0.5 percent and the U.K.'s FTSE 100 Index dipped by 0.2 percent.
In the bond market, treasuries saw continued weakness following yesterday's slump. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, shot up 6.5 basis points to a one-month closing high of 4.273 percent.
Looking Ahead
Readings on consumer prices, durable goods orders and consumer sentiment may attract some attention on Friday but are likely to be overshadowed by the latest developments in the Middle East.
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