NEW YORK — Falling gasoline prices aren't enough to rescue the stock market from its funk.
That was clear Thursday as lackluster retail sales and a jump in unemployment claims pushed the Dow Jones industrial average down almost 350 points in its worst drubbing in more than two months.
The latest numbers were far from dramatic, but they reinforced a perception that any boost to consumer spending as a result of lower fuel costs is being offset by a fear among Americans that their jobs could be in danger.
Meanwhile, commodity prices again declined broadly Thursday. Rather than having a positive effect on stocks, the downdraft raised new concern that the picture could worsen if overseas economies, one of the few bright spots recently, continued to deteriorate.
The bottom line for the market, experts said, is that investors feel little incentive to buy stocks and won't until clear signs of improvement emerge.
"We haven't had any good news," said Fred Dickson, chief market strategist at D.A. Davidson & Co. "There's no surfacing of anything that can get investors excited."
The Dow industrials skidded 344.65 points, or 3%, to 11,188.23. It was the blue-chip indicator's worst showing since a 358-point loss on June 26. On the New York Stock Exchange, falling stocks trounced advancers by a ratio of 5 to 1.
The broader Standard & Poor's 500 was off 38.15 points, or 3%, to 1,236.83. A technology-stock sell-off pounded the Nasdaq composite index, which slumped 74.69 points, or 3.2%, to 2,259.04.
The long-depressed financial sector, which had been gaining in the last week or so, was the day's worst performer amid the return of anxiety about the effects of the credit crunch and the future of housing giants Fannie Mae and Freddie Mac.
Shares of Fannie Mae sank 12% on Thursday, while Freddie Mac declined 8%.
Bank of America tumbled 7.2%, Citigroup dropped 6.7%, JPMorgan Chase slid 4.5% and Wells Fargo fell 4.3%.
An index of financial stocks in the S&P 500 lost 4.7%. It is down 39% in the last year.
Stocks of industrial companies, raw-material producers and tech companies also fell sharply on fears that battered European economies and cooling emerging markets will eat into demand for U.S. goods.
The sell-off demonstrated Wall Street's change of attitude toward falling prices of crude oil, natural gas and farm products.
