NEW YORK — Stocks backtracked from an early plunge Thursday but still closed lower on concerns about lingering economic weakness in the U.S.
Investors were also uneasy about the possibility that Greece’s rising debt problems might spill over to other countries.
But the dollar, which spiked early in the day as investors sought safe investments, came off its highs. And that signaled that investors, at least for now, had lost some of their fears about overseas economies.
The Dow Jones industrial average closed down 53 points after having fallen 188. Treasury prices, like the dollar, rose as investors sought safety.
An unexpected rise in first- time claims for unemployment insurance made for a sour mood in the market.
The Labor Department said first-time unemployment claims rose by 22,000 to a seasonally adjusted 496,000.
Economists polled by Thomson Reuters had forecast a drop in claims.
It was the second straight week that claims rose unexpectedly.
High unemployment remains one of the biggest obstacles to a sustained economic recovery. The Labor Department’s monthly report on employment will be released next week.
The market was watching the dollar as it gained against the euro, which is seen as being in jeopardy because of the weak economy in Greece and other European countries.
The euro touched a nine- month low against the dollar before regaining some ground.
Concerns about Greece have dogged investors this year but grew after credit-rating agencies Standard & Poor’s and Moody’s said they might further downgrade the country’s debt. That would make it harder for the country to borrow.
The Dow fell 53.13, or 0.5 percent, to 10,321.03. The broader Standard & Poor’s 500 index slipped 2.30, or 0.2 percent, to 1,102.94. The Nasdaq composite index fell 1.68, or 0.1 percent, to 2,234.22.
