Investing.com - U.S. stocks tumbled on Thursday on fears a softening European economy could spell trouble for U.S. earnings down the road.
At the close of U.S. trading, the Dow 30 fell 1.97%, the S&P 500 index fell 2.07%, while the NASDAQ Composite index fell 2.02%.
The CBOE Volatility index index, which measures the outlook for market volatility, was up 24.16% at 18.76.
Wall Street stocks took a nosedive earlier on fears a floundering European economy could hurt Corporate America's business overseas.
In Europe earlier, data revealed that Germany exports fell 5.8% in August, which rattled nerves in U.S. equities markets.
Elsewhere, European Central Bank President Mario Draghi spoke earlier and reiterated that the institution's willingness to loosen policy to steer the euro area away from deflationary decline if needed, adding that markets are expecting the bank to begin hiking interest rates some time in 2017.
Ongoing conflicts in the Middle East and in Ukraine added to fears that geopolitical events could slow global growth and dampen U.S. recovery, while fears of an Ebola outbreak spreading to Europe and even into the U.S. sent investors ditching equities and chasing safe-haven gold and dollar positions.
Upbeat U.S. data did little to boost spirits.
The U.S. Department of Labor reported earlier that the number of individuals filing for initial jobless benefits in the week ending Oct. 4 fell by 1,000 to 287,000 from the previous week’s revised total of 288,000.
Analysts had expected jobless claims to rise by 6,000 to 294,000 last week.
Leading Dow Jones Industrial Average performers included Wal-Mart Stores Inc (NYSE:WMT), which was down 0.47%, The Travelers Companies Inc (NYSE:TRV), down 0.57%, and Procter & Gamble Company (NYSE:PG), down 0.61%.
The Dow Jones Industrial Average's worst performers included Caterpillar Inc (NYSE:CAT), down 3.25%, Exxon Mobil Corporation (NYSE:XOM), down 2.93%, and Chevron Corporation (NYSE:CVX), down 2.90%.
European indices, meanwhile, ended the day largely lower.
After the close of European trade, the DJ Euro Stoxx 50 fell 0.21%, France's CAC 40 fell 0.64%, while Germany's DAX rose 0.11%. Meanwhile, in the U.K. the FTSE 100 fell 0.78%.