Dow tumbles 260 points as traders question the strength of the economic recovery

• All three major US stock indexes fell on Thursday as traders questioned the strength of the ongoing economic recovery.
• Jobless claims rose to 373,000 last week, the Labor Department said Thursday, missing the median estimate of 350,000.
• Economically linked sectors including financials, industrials, and materials led the decline.

Major US stock indexes closed lowers on Thursday as an expected rise in weekly jobless claims furthered ongoing concerns of the economic recovery.

Jobless claims rose to 373,000 last week, the Labor Department said Thursday. That missed the median estimate of 350,000 claims from economists surveyed by Bloomberg. The print also snaps a two-week streak of declines and continues claims' choppy downward trend.

The biggest sector declines in the S&P 500 were most pronounced in economically linked industries like financials, industrials, and materials.

Here's where US indexes stood at the 4 p.m. ET close on Thursday:

• S&P 500: 4,320.82, down 0.9%
• Dow Jones industrial average: 34,421.93, down 0.8% (260 points)
• Nasdaq composite: 14,559.79, down 0.7%

Brad McMillan, CIO at Commonwealth Financial Network, said Thursday's downturn is normal and "even healthy" given the recent strong run.

"This looks like a short-term reaction to recent concerns about the delta variant more than anything else," he said. "Given that vaccinations are limiting case growth, which should keep the country open for business, the economic risks are likely limited."

He added that corporate earnings likely to grow sharply in the third quarter, especially with interest rates still low.

In cryptocurrencies, the price of bitcoin slipped as much as 7% amid a broader cryptocurrency sell-off that has also dragged crypto-linked stocks, including Coinbase, Riot Blockchain, and Marathon Digital lower.

According to crypto lender Amber Group, the price of the digital asset may have to fall as low as $25,000 before major investors start snapping up bitcoin in large quantities again.

Crude prices rebounded after the Energy Information Administration revealed that the output will decline less than previously forecast, Reuters reported.

West Texas Intermediate crude climbed as much as 1.3%, to $73.17 per barrel. Brent crude, oil's international benchmark, rose 1.3%, to $74.35 per barrel, at intraday highs.

Meanwhile, gold slipped as much as 0.5%, to $1,794.37 per ounce.