U.S. markets plunge Thursday

NEW YORK, July 2 (UPI) -- U.S. markets plunged Thursday after the Department of Labor said the unemployment rate rose from 9.4 percent to 9.5 percent in June.

Economists had predicted a sharper increase, but 467,000 jobs lost in the month undermined confidence in a recovery.

By close, the Dow Jones industrial average lost 223.32 points, or 2.63 percent, to 8,280.74. The Standard & Poor's 500 dropped 2.91 percent, 26.91 points, to 896.42. The Nasdaq composite index shed 49.20 points, 2.67 percent, to 1,796.52.

On the New York Stock Exchange, 652 stocks advanced and 2,404 declined on a volume of 4.1 billion shares traded.

The benchmark 10-year U.S. Treasury bond rose 14/32 to yield 3.497 percent.

The euro fell to $1.3998, compared to Wednesday's $1.4142. Against the Japanese yen, the dollar rose to 95.93 yen, compared to Wednesday's 96.64 yen.

In Tokyo, the Nikkei average lost 63.78 points to 9,876.15, off 0.64 percent.

In London, the FTSE 100 index dropped 2.11 percent, 63.78 points, to 9,876.15.