Stocks slump as economic, Europe worries continue

NEW YORK (AP) — Stocks fell sharply Thursday as investors grew more concerned about economic weakness in the U.S. and Europe.

Just before noon, the Dow was down more than 340 points.

The Standard & Poor's 500 index sank 2.6 percent, bringing it 10 percent below its recent high of 1,363 reached on April 29. A decline of 10 percent is considered to be a market correction. The Dow Jones industrial average is now down more than 1,000 points from July 21.

The U.S. government said before the market opened that the number of people who applied for unemployment benefits for the first time edged only slightly lower last week to 400,000. That's still above the 375,000 level that economist say indicates a healthy job market. It was the latest indication of weakness in the U.S. economy.