Dow tumbles more than 500 points as investors fear the US economy is faltering

Stocks plummeted on Thursday as fears of a weakening US economy grew amid high-interest rates. The Dow dropped 514 points, or 1.2%, while the S&P 500 and Nasdaq Composite also experienced losses. The Labor Department reported an increase in first-time jobless benefit applications, reaching the highest level since August of the previous year. Continuing claims also rose to the highest level since November 2021. Despite Federal Reserve Chair Jerome Powell’s assurance of a rate cut in September, the possibility of a significant decline in the job market could lead to a more dramatic cut. The focus now is on the stability of the job market for the overall health of the economy. The upcoming July jobs report will shed light on the state of employment.