NEW YORK — Stocks fell to their lowest level in four months Friday after the government said hiring remains weak and another European country, Hungary, warned its economy was in trouble.
The Dow Jones industrial average dropped 323 points to close below 10,000. It was the lowest finish since February and the third-worst slide of the year.
Major indexes all lost more than 3 percent. The drop pushed the market back into what’s called a “correction,” or a decline of at least 10 percent from its April high.
Interest rates slid after traders shoveled money into the safety of Treasurys and the dollar.
Retailers were among the hardest-hit stocks after investors bet that a weak job market would discourage consumers from spending.
Financial stocks also fell sharply on concerns that borrowers would continue having problems paying their bills. Banks were hurt by more worries about their exposure to Europe’s debt crisis.
The Dow fell 323.31, or 3.2 percent, to 9,931.97, its steepest drop since May 20. It was the Dow’s third drop of more than 300 points this year, all of which occurred in the past month. The Dow is now down 11.4 percent from its 2010 peak of 11,205.
The Standard & Poor’s 500 index fell 37.95, or 3.4 percent, to 1,064.88. The index is down 12.5 percent from its 2010 high. The Nasdaq composite index dropped 83.86, or 3.6 percent, to 2,219.17. It’s down 12.3 percent from its high of the year.
