Stocks fell on Thursday as worries about the US economy returned following a big jump in unemployment claims and record job layoffs.

The Nasdaq composite index fell 74.45 points, or 3.35 per cent, to end at 2,146.17, according to the latest data, while the Dow Jones industrial average slumped 80.03 points, or 0.74 per cent, to 10,796.65. The benchmark Standard & Poor's 500 index dropped 18.85 points, or 1.49 per cent, to 1,248.58.

The government reported weekly first-time jobless claims climbed in the week ended April 28th to the highest level in more than five years. Also pointing to a weakening labour market, job cuts announced by US companies leaped in April, according to the outplacement firm Challenger, Gray & Christmas, to the highest since the company started the survey in 1993.