Correction watch: Here are the official levels

Market scare not over yet: Paulson

In another down day on the trading floor, major U.S. indices hovered nearly correction territory one day after the Nasdaq Composite first entered a correction.

The S&P 500 was last 1.8 percent from a correction, which is defined as a 10-percent drop from the most recent intraday high. A 10 percent drop for the S&P 500 would be 1,817.33.

The Dow hovered 2.5 percent above the official correction level of 15,615.58.

Read MoreSelloff could get 'a little scarier yet': Jim Paulsen

Trader on the floor of the New York Stock Exchange.
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The tech-heavy Nasdaq Composite fell briefly into correction below 4149.51 in early trade Thursday after also hitting below the level during Wednesday's selloff.

Concern about global economic growth and possible effect on the U.S. economy send the markets reeling on Thursday despite U.S. jobless claims dropping to a 14-year low.

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