At closing bell, the Dow Jones Industrial Average index declined 130.40 points, or 0.47%, to 27,901.98. The S&P 500 index fell 28.48 points, or 0.84%, to 3,357.01. The tech-heavy Nasdaq Composite Index dropped 140.19 points, or 1.27%, to 10,910.28.
The weakness on Wall Street came as stocks extended the sell-off seen on Wednesday after the US Department of Labor data showed that initial jobless claims declined only slightly last week from the previous one, adding to concerns that the economic recovery is plateauing. The Labor Department said initial jobless claims slipped to 860,000, a decrease of 33,000 from the previous week's revised level of 893,000. The Labor Department said initial jobless claims slipped to 860,000, a decrease of 33,000 from the previous week's revised level of 893,000.
The Commerce Department also released a report showing new residential construction pulled back by much more than expected in the month of August. The report said housing starts tumbled by 5.1 percent to an annual rate of 1.416 million in August after soaring by 17.9 percent to a revised rate of 1.492 million in July. The Labor Department said building permits also fell by 0.9 percent to an annual rate of 1.470 million in August after spiking by 17.9 percent to a revised rate of 1.483 million in July.
Negative sentiment was also generated amid conflicting messages about the timeline for a coronavirus vaccine. President Donald Trump said late Wednesday that the U.S. could distribute a vaccine as early as October, contradicting the director of the Centers for Disease Control and Prevention, who told lawmakers earlier in the day that vaccinations would be in limited quantities this year and not widely distributed for six to nine months.
Traders were also monitoring the status of stimulus talks after Trump suggested Wednesday he could support a larger package. However, multiple reports indicated that Senate Republicans appeared reluctant to do so without more details on a bill.
On Wednesday, Federal Reserve policymakers ended their two-day policy meeting by keeping interest rates steady. The Fed also changed its forward guidance to reflect its more dovish stance on inflation, signalling that its benchmark interest rate could remain near zero through 2023. Federal Reserve Chair Jerome Powell, speaking to reporters on Wednesday, acknowledged the country's long road to "maximum employment". He also said that the central bank was limited in its capacity to address some of the gaps around wage growth and workforce participation.
Tech stocks slid. Facebook and Amazon were down 3.3% and 2.3%, respectively. Netflix closed 2.8% lower. Alphabet dropped 1.7% while Apple and Microsoft were both down at least 1%.
Among Indian ADR, INFOSYS added 0.81% to $13.67, Azure Power Global inclined 3.07% to $31.90, Wipro grew 2.33% to $4.83, and Tata Motors fell 2.63% to $10. HDFC Bank fell 0.46% to $50.23, Dr Reddys Labs rose 6.26% to $66.55, ICICI Bank was down 1.08% to $10.10, and Vedanta fell 0.69% to $7.17. WNS Holdings fell 2.25% to $65.69.
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