Stocks fell Thursday, sending the Dow Jones industrial average below 10,000, as concern about Spain's fiscal stability and a slowdown in manufacturing wiped out early gains triggered by a drop in jobless claims.
The Dow Jones industrial average closed down 74.25, or 0.74%, at 9,985.81; the last time the Dow closed below 10,000 was July 6, when it closed at 9,743.62. The S&P 500 fell 8.11, or 0.77%, ending at 1,047.22; and the Nasdaq composite closed down 22.85, or 1.07%, at 2,118.69. All numbers are preliminary.
Shares erased gains after reports that a Spanish court voided €5.1 billion ($6.5 billion) in value-added tax that Spain collected in past years, ruled that its system of auditing the sales tax was illegal. That spurred concern that the ruling may worsen the European debt crisis. A spokesman for the Spanish government denied the report.
Stocks also retreated after the Kansas City Federal Reserve said manufacturing slowed in August, with no companies reporting month-over-month increases, spurring concern about a slowdown in the economic recovery.
Stocks advanced earlier Thursday after the Labor Department reported that applications for jobless benefits fell by 31,000 last week, more than forecast, easing concern that American employers are again slashing payrolls as the economy slows. Claims dropped to 473,000 in the week ended Aug. 21.
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