Dow closes nearly 500 points lower as investors fear US economy is faltering – Boston News, Weather, Sports [Video]

New York (CNN) — Stocks tumbled Thursday after fresh data stoked fears that the US economy is weakening as interest rates stay at a 23-year high.

The Dow slid by 496 points, or 1.2%, after plunging more than 700 points earlier in the session. The S&P 500 lost 1.4% and the Nasdaq Composite fell 2.3%.

US Treasury yields fell. The 10-year yield dipped below 4%.

“With a package of data released today suggesting the economy is cooling at a faster — and perhaps too fast — pace, the drop in the ten-year Treasury yield to below 4% reflects a looming economic growth scare,” wrote Quincy Krosby, chief global strategist at LPL Financial, in a Thursday note.

New economic data revealed that first-time applications for jobless benefits rose last week to an estimated 249,000 filings. That’s the highest tally since last August, according to the Labor Department. Meanwhile, continuing claims, filed by people who have …