The Dow Jones Industrial Average dropped below the 10,000 mark for the first time since early June as investors struggled to shake concerns that the US recovery has stalled. All major Wall Street indices closed lower, erasing a morning rally after the Labour Department reported a greater-than-expected drop in weekly jobless claims. A disappointing regional report on manufacturing in several central US states later Thursday reinforced slowdown worries, according to dpa. In Europe, a court ruling against Spanish tax authorities prompted fears that the government will not be able to close its gaping budget hole. Spain has been at the centre of Europe's ongoing debt crisis. The loss comes as most economists predict a sharp downward revision of US second-quarter growth, when the government on Friday releases its second estimate of economic output for the period. A growth rate as low as 1.4 per cent is expected for the April-June period. The blue-chip Dow industrials dropped 74.25 points, or 0.74 per cent, to 9,985.81. The broader Standard and Poor's 500 Index was down 8.11 points, or 0.77 per cent, to 1,047.22. The technology-heavy Nasdaq Composite Index fell 22.85 points, or 1.07 per cent, to 2,118.69. The US currency dropped against the euro to 78.63 euro cents from 79 euro cents on Wednesday. The dollar fell against the Japanese currency to 84.45 yen from 84.58 yen.
