U.S. stocks dipped more than 1 percent on Thursday after the latest jobs and manufacturing data sparked worries about the pace of economic recovery, with technology shares leading losses.
The September manufacturing data, with worse-than-expected jobless claims released before the bell, overshadowed more positive reports on construction spending and pending home sales.
The Institute of Supply Management's manufacturing reading fell to 52.6, lower than economists' forecast of 54.0 and August's 52.9.
Wall Street got smacked, and I think that largely came as result of the ISM headline, said Ronald Simpson, managing director at Action Economics in Tampa, Florida. It was pretty close to expectations, but if you're looking at recovery, the number really didn't do the trick.
Cisco Systems Inc
The Dow Jones industrial average <.DJI> was down 120.54 points, or 1.24 percent, at 9,591.74. The Standard & Poor's 500 Index <.SPX> was down 11.54 points, or 1.09 percent, at 1,045.54. The Nasdaq Composite Index <.IXIC> was down 35.15 points, or 1.66 percent, at 2,087.27.
In other deal talks, Penske Automotive Group Inc
Bank of America Corp
Rising shares included wine and spirits maker Constellation Brands Inc
The S&P 500, which notched its second straight quarterly advance of 15 percent in the third quarter, is now up about 54 percent from its 12-year closing low in March.
(Reporting by Angela Moon; Editing by Padraic Cassidy)