A dour report on job losses in June sent stocks sharply lower Thursday.
Major stock indexes fell more than 2.5 percent after the government said the U.S. unemployment rate hit a 26-year high.
Trading on the New York Stock Exchange was extended until 4:15 p.m. Eastern time in order to execute customer orders impacted by system irregularities, an NYSE spokeswoman said.
As investors sold off stocks amid fresh concerns about the economy, they moved into the safety of bonds, pushing Treasury yields lower.
Recession-weary employers in the U.S. slashed 467,000 jobs in June, the Labor Department reported, far worse than the 363,000 that economists expected and a grim signal that the path to recovery will be bumpy. The jobless rate rose to 9.5 percent from 9.4 percent in May.
The report â€" one of the most closely watched economic indicators â€" disappointed investors who had become encouraged by positive signs recently that key areas of the economy including housing and manufacturing were showing modest signs of improvement.
The stock market rallied furiously this spring off of 12-year lows beginning in early March on hopes for a recovery, but the upward momentum stalled in mid-June as doubts began to emerge about whether the economy had really found a bottom. The June jobs report was the latest blow to the market's confidence.
"There's more and more evidence mounting against this rally continuing," said Doug De Groote, a managing director at United Wealth Management. Consumers are likely to lead the nation out of the ongoing recession, but that won't happen if more people are losing their jobs, he said.
Shares of consumer products companies were among the hardest hit Thursday.
According to preliminary calculations, the Dow Jones industrials are down 219.09, or 2.6 percent, to 8,284.97 as trades were still being settled. The Standard & Poor's 500 index is down 26.25, or 2.8 percent, to 897.08 and the Nasdaq composite index fell 49.20, or 2.7 percent, to 1,796.52.