It seems the market has digested the recent good news concerning oil so today it was back to worrying once again about China, Europe and the rest of the world, especially with the statement from the ECB declaring that the global economic outlook had gotten worse and that central bank policy would likely have limited effect.  This all sent investors into a selling spree sending the Dow down 174 points and wiping out all S&P gains for the year thus far.  Naturally, crude oil settled lower too.  Curiously yesterday's reports stated that there had been significant drawdowns in U.S. crude stockpiles but today another report stated exactly the opposite driving the black stuff down 2.7 percent.  This seems to be happening with an odd regularity. One day they say we're depleting, the next it's a glut.  Is it really that hard to count barrels of oil?  Q1 still weighs heavily on everyone's mind with expected losses looming.  This also happens with an odd regularity, commented on today that "the recent drop in earnings forecasts could result in more positive surprises," just as it did all last year.  Is this just a trick to drive up stock prices?  Volume was right in line with recent averages at 7.2 billion shares.

Markets | Thu Apr 7, 2016 6:01pm EDT

Wall St. falls amid global growth worries

BY CAROLINE VALETKEVITCH

DJ:  17,541.96  -174.09      NAS: 4,848.37  -72.35        S&P: 2,041.91  -24.75

(Reuters)  U.S. stocks dropped on Thursday as oil prices slid and worries about the global economy resurfaced, dragging down the dollar against the yen and causing investors to flee riskier assets.

The S&P 500 posted its biggest daily percentage loss in about six weeks, while the growth worries weighed especially on interest-rate sensitive financials .SPSY, strategists said. The group fell 1.9 percent and was the biggest drag on the S&P 500.

"There's concern about a global slowdown," said Michael O'Rourke, chief market strategist at JonesTrading in Greenwich, Connecticut.

"I think what we're seeing is the market believes that these (global central bank) policies and discussions on negative rates have diminishing returns at this point and are creating more harm than good, more uncertainty than stability."

The Dow Jones industrial average .DJI closed down 174.09 points, or 0.98 percent, to 17,541.96, the S&P 500 .SPX lost 24.75 points, or 1.2 percent, to 2,041.91 and the Nasdaq Composite .IXIC dropped 72.35 points, or 1.47 percent, to 4,848.37.

The dollar fell as much as 1.6 percent against the yen JPY=.

Minutes from the Federal Reserve's March meeting released on Wednesday pointed to concerns about the U.S. central bank's limited ability to tackle a global economic slowdown.  Minutes from the European Central Bank's March policy meeting on Thursday showed that governors from around the euro zone had been told the global economic outlook had got worse.

Crude oil LCOc1 CLc1 settled lower on Thursday after data showed higher weekly inventories. The S&P energy index .SPNY was down 0.6 percent.

Adding to investor caution, first-quarter earnings kick into high gear next week, with a 7.4-percent year-over-year decline projected for S&P 500 companies, according to Thomson Reuters data.  Some strategists argue the recent sharp drop in earnings forecasts could result in more positive surprises.

Verizon Communications Inc (VZ.N) shares were down 2.8 percent at $52 after Bloomberg reported Verizon plans to make a first-round bid for Yahoo Inc's (YHOO.O) web business next week. Yahoo was down 1.3 percent at $36.17.

Volume was slightly above the short-term average. About 7.2 billion shares changed hands on U.S. exchanges, compared with the 7.1 billion daily average for the past 20 trading days, according to Thomson Reuters data.

After the bell, shares of Gap (GPS.N) fell 9.1 percent to $25.16 following the release of its March sales results.

Declining issues outnumbered advancing ones on the NYSE by 2,349 to 677, for a 3.47-to-1 ratio on the downside; on the Nasdaq, 2,063 issues fell and 751 advanced for a 2.75-to-1 ratio favoring decliners.

The S&P 500 posted seven new 52-week highs and one new low; the Nasdaq recorded 23 new highs and 23 new lows.