A Trader works on the floor of the New York Stock Exchange
Traders work on the floor of the New York Stock Exchange, August 3, 2011. REUTERS

Major stock indexes tumbled, with the Nasdaq briefly falling more than 2 percent on Thursday, resuming their downturn after a labor market report became the latest datapoint to show the economy has stalled.

The Dow Jones industrial average .DJI slid 155.65 points, or 1.31 percent, at 11,740.79. The Standard & Poor's 500 Index .SPX was down 20.64 points, or 1.64 percent, at 1,239.70. The Nasdaq Composite Index .IXIC dropped 48.47 points, or 1.80 percent, at 2,644.60.

New U.S. claims for unemployment benefits edged down last week, pointing to a marginal improvement in the labor market, the Labor Department said.