Investing.com - U.S. stocks fell on Thursday on reports Portugal's largest bank missed payments to bondholders, which sparked concerns that banking sectors in the euro zone periphery may be in trouble.
At the close of U.S. trading, the Dow 30 fell 0.42%, the S&P 500 index fell 0.41%, while them NASDAQ Composite index fell 0.52%.
The Volatility S&P 500 index, which measures the outlook for market volatility, was up 8.41% at 12.63.
The parent company of Portugal's largest bank, Banco Espirito Santo (LISBON:BES), said it missed payments on commercial paper to a few clients, which spooked markets by fueling concerns surrounding the soundness of the banking sectors in Portugal as well as in Spain and Italy.
Elsewhere, weak euro zone factory data rattled nerves in stock markets across the globe, including in the U.S.
Italy's industrial output unexpectedly fell 1.2% in May from April, defying expectations for a 0.2% expansion, while French industrial production plunged 1.7% in May, also confounding expectations for a 0.2% gain.
Meanwhile in the U.S., solid jobless claims managed to help bring prices up from earlier lows.
The U.S. Department of Labor reported earlier that the number of individuals filing for initial jobless benefits in the week ending July 5 declined by 11,000 to 304,000. Analysts had expected jobless claims to hold steady at 315,000 last week.
Elsewhere, Wall Street continued to applaud the Federal Reserve's June policy meeting minutes released day earlier, which pointed to an October date in which the U.S. central bank's bond-buying program should end.
The Fed sidestepped hinting at when interest rates could rise, which cushioned losses by stoking expectations for borrowing costs to remain low while the economy gains steam.
Leading Dow Jones Industrial Average performers included Verizon Communications Inc (NYSE:VZ), up 1.44%, Intel Corporation (NASDAQ:INTC), up 1.25%, and Coca-Cola Enterprises Inc (NYSE:CCE), up 0.77%.
The Dow Jones Industrial Average's worst performers included Home Depot Inc (NYSE:HD), down 1.65%, Nike Inc (NYSE:NKE), down 1.52%, and Exxon Mobil Corporation (NYSE:XOM), down 0.95%.
European indices, meanwhile, ended the day lower.
After the close of European trade, the DJ Euro Stoxx 50 fell 1.57%, France's CAC 40 fell 1.34%, while Germany's DAX fell 1.52%. Meanwhile, in the U.K. the FTSE 100 fell 0.68%.