Stocks ended near session lows Thursday, with all key S&P sectors finishing in the red, amid fears over the weak global economy and as optimism over further stimulus the Federal Reserve diminished.
The Dow Jones Industrial Average fell for the fourth-consecutive session, tumbling 115.30 points, or 0.88 percent, to close at 13,057.46, led by H-P .
The S&P 500 dropped 11.41 points, or 0.81 percent, to end at 1,402.08. The Nasdaq erased 20.27 points, or 0.66 percent, to finish at 3,053.40.
The CBOE Volatility Index, widely considered the best gauge of fear in the market, finished near 16.
All 10 S&P sectors were in negative territory, led by energy and utilities.
Wall Street initially breathed a sigh of relief Wednesday after the
But St. Louis Fed President James Bullard threw cold water on expectations for further Fed easing, saying current economic conditions are not weak enough and called the latest meeting minutes "stale," on CNBC.
“The list of options that are actively being discussed probably suggest that the Fed is seeing that QE itself has not been necessarily the solution and perhaps they need to move in a different direction or combination,” said Quincy Krosby, market strategist at Prudential Financial. “At the same time, there’s been some profit taking as investors wait for the next catalyst.”
Some weak global reports further dampened sentiment. China’s factory output
And in Europe, euro zone countries were
Meanwhile, Spain is negotiating with the euro zone over conditions for international aid to bring down its borrowing coststhough the country has not made a final decision to request a bailout, according to sources.
Facebook edged higher after the company announced a new iPhone and ipad app. The company said the new app is twice as fast as the old version and devotes more screen space to the news feed. Separately,
Among earnings, Hewlett-Packard tumbled after the tech giant missed quarterly revenue expectations and cut its full-year earnings outlook. In addition, at least seven brokerages slashed their price targets on the company.
Big Lots plunged more than 20 percent to lead the S&P 500 laggards after the retailer posted lower-than-expected earnings and slashed its full-year adjusted profit forecast. Canaccord Genuity cut its price target on the firm to $41 from $52.
Salesforce.com is slated to post earnings after the closing bell.
Baidu slumped after the Chinese Internet company was downgraded by Deutsche Bank to "hold" from "buy."
General Growth Properties surged after hedge fund firm Pershing Square Capital Management called for the real estate investment trust to consider putting itself up for sale.
On the economic front, jobless claims gained unexpectedly to the
New home sales gained 3.6 percent in July,
Meanwhile, manufacturing ticked higher in August but hiring in the sector slowed and weak overseas demand for American goods kept the pace of overall growth subdued, according to financial information firm Market and its U.S. "flash" manufacturing PMI.
—By CNBC’s JeeYeon Park (Follow JeeYeon on Twitter: @JeeYeonParkCNBC)
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