By Anora Mahmudova and Sara Sjolin, MarketWatch

Jobless claims drop sharply, wages tick up

A U.S. stock market selloff accelerated in late trade Thursday, with the Dow industrials dropping more than 200 points, weighed down by hefty losses in biotechnology and technology sectors.

Read: Biotechs undercut key support level (http://www.marketwatch.com/story/biotechs-undercut-key-support-level-2015-04-30)

The main indexes were on track to finish the month marginally higher.

A number of economic releases and earnings reports already had been driving stocks lower, a day after the Federal Reserve left open the possibility of an interest rate hike as early as June.

Brian Fenske, head of sales trading at New York-based brokerage firm, said days like this remind investors that markets do not always go in one direction," he said.

"It is probably a combination of events and some earnings over the past few days that has sparked a selloff. Big moves in currency and commodity markets have played a role as did disappointing earnings from Yelp and Twitter," Fenske offered.

The S&P 500 (SPX) fell 24 points, or 1.1%, to 2,082.89 with all 10 main sectors trading lower. Utilities, tech and health-care stocks were hit the hardest. The Dow Jones Industrial Average (DJI) dropped 211 points, or 1.2%, to 17,825.37.

Taking the worst of the beaten Thursday was the Nasdaq Composite (RIXF), which sank about 84 points, or 1.7%, to 4,941.62, with biotechnology stocks driving the index south. The iShares Nasdaq Biotechnology index ETF (IBB) dropped 3.4% and was down more than 8% from its peak reached last Thursday.

Fenske took some comfort in the view selling hasn't been frenetic. "This selling is not frenzied, it's just a regular down day, which is normal in equity markets," he added.

Thursday's economic data came in above expectations and pointed to improvement in the labor market and further inflation stabilization - both are key gauges of U.S.economic health that the central bank said it would use to help guide its hand as it aims to start normalizing interest rates.

Channing Smith, managing director at Capital Advisors, said recent fluctuations in currency and bond markets have created confusion for equity investors.

"Treasury yields have risen over the past week or so and the euro strengthened rapidly, something that is not quite explainable. Those unusual moves spooked investors, by creating uncertainty," Smith said.

He also pointed to very high valuations despite falling earnings, but said eventually stock prices have to reconcile with the global and domestic economic situation, which is experiencing a slowdown.

(http://www.marketwatch.com/storyno-meta-for-guid)Data:The number of people who applied for U.S. unemployment benefits (http://www.marketwatch.com/story/us-jobless-claims-sink-to-15-year-low-2015-04-30)fell 34,000 to 262,000 in the seven days from April 19 to April 25, the lowest level in 15 years.

The cost of employing the average U.S. worker (http://www.marketwatch.com/story/wages-pick-up-in-the-first-quarter-2015-04-30)climbed 0.7% in the first quarter.

Consumer spending rose a seasonally adjusted 0.4% in March (http://www.marketwatch.com/story/consumer-spending-shows-limited-advance-in-march-2015-04-30). But personal income was flat last month, likely reflecting slower job creation. Inflation, as gauged by the PCE price index, climbed 0.2% in March.

The Chicago PMI jumped in April to a reading of 52.3 from 46.3 in March, to return above the 50-mark signaling expansion. A double-digit gain in the new orders component led to the advance.

Earnings: Reporting ahead of the bell, Exxon MobilCorp.(XOM) posted better-than-expected profit and sales but the integrated oil giant's results still show signs of the plunge in oil prices. Shares fell 0.5%.

Another energy company, ConocoPhillips (COP), reported an adjusted first-quarter loss of 18 cents, slightly bigger than what was forecast. Shares were off slightly.

After the bell, American International Group Inc.(AIG)LinkedInCorp.(LNKD) and Visa Inc. (V) are set to report. Read about what's expected (http://www.marketwatch.com/story/new-york-times-exxon-aig-linkedin-fireeye-earnings-in-focus-2015-04-30).

Shares of Yelp Inc.(YELP) dropped 24% after disappointing quarterly results.

For more news on Thursday stock movers and shakers please read here (http://www.marketwatch.com/storyno-meta-for-guid).

Other markets: Asian stock markets closed mostly lower (http://www.marketwatch.com/storyno-meta-for-guid), while European benchmarks (http://www.marketwatch.com/storyno-meta-for-guid) were mixed.

Crude-oil prices (CLM5) moved slightly higher (http://www.marketwatch.com/storyno-meta-for-guid) and most metals declined. The dollar (DXY) traded mixed against other major currencies (http://www.marketwatch.com/storyno-meta-for-guid).

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