US stocks on downward trend

US stocks have slumped for the second straight day in a row as new data on the job market has sparked fresh concerns over the economic recovery.

The Dow Jones Industrial Average fell 76.89 points to 10,662.42 in closing on Thursday, while the S&P 500 index dropped 9.35 points to 1,124.83, AFP reported.

Additionally, the Nasdaq index lost 7.47 points to close at 2,327.08.

One reason attributed to the downward trend is the lower than expected Eurozone purchasing managers’ index (PMI) and a contraction in Ireland’s Gross Domestic Product.

More alarming, however, were the recent figures released by the US Labor Department showing that initial jobless claims for September were 465,000, much higher than the expected 450,000.

Additionally, a recent Gallup poll has shown that the US unemployment rate is continuing to increase on a monthly basis.

“The most economic sensitive sectors like energy materials, the financials to some degree, are leading the way down,” said Deutsche Bank analyst Owen Fitzpatrick.