Economic worries sink stocks Thursday

NEW YORK, Aug. 4 (UPI) -- Investors fled stock positions Thursday in a broad retreat, as worries of weak U.S. and European economies continued to rattle confidence.

The Dow Jones industrial average saw more than 500 points wiped out as the index dropped 4.31 percent, setting the index almost 300 points below its position at the start of the year.

The broader Standard & Poor's 500 index was also sent reeling, losing 4.78 percent, 60.27 points, to 1,200.07. The Nasdaq composite index shed 5.08 percent, giving up 136.68 points to 2,556.39.

The Labor Department said 1,000 fewer jobless claims were filed in the week ending Saturday, but investors are concerned with months of disappointing data in manufacturing, housing, unemployment and consumer spending.

Across the Atlantic, the European Central Bank moved to shore up bond markets as fears of debt burdens in Spain and Italy continued to undermine investor confidence. On Wall Street, 10-year treasury notes rose 1 25/32 to yield 2.425 percent, as investors sought safety in government bonds.

On the New York Stock Exchange, 140 stocks advanced and 2,968 declined on a volume of 7.4 billion shares traded.

The euro fell to $1.41 from Wednesday's $1.4323. Against the yen, the dollar rose to 79.10 yen from Wednesday's 77.06 yen.

In Tokyo, the Nikkei 225 index rose 0.23 percent, 22.04, to 9,659.18.

In London, the FTSE 100 index lost 3.2 percent, 178.75, to 5,405.76.