Global stocks hit by debt concerns, US data

US stocks fell for a second day on Thursday as labor market data showed more signs of weakness, while a warning from Qualcomm and poor results from Stanley Black & Decker also discouraged investors.

A late bounce cut the losses of the Dow and the S&P 500 nearly in half.

The Dow Jones industrial average fell 68.65 points, or 0.53 percent, to end at 12,964.10. The S&P 500 Index dropped 8.22 points, or 0.59 percent, to 1,376.92. The Nasdaq Composite lost 23.89 points, or 0.79 percent, to 3,007.56.

European equity markets sold off as a string of downbeat corporate outlooks and weak US data dampened expectations of an earnings recovery, while fears about the sovereign debt burden across the region added to the gloom.

The FTSEurofirst 300 fell 0.5 percent to 1,040.79 points, with weakness in the euro zone partly offset by gains of 0.5 percent on Sweden's bourse and 0.7 percent in Denmark, as well as a flat print on Britain's FTSE 100 .

In Tokyo, Nikkei average slipped 0.8 percent, reversing the previous session's sharp gains as investors avoided risk ahead of a closely watched Spanish bond auction later in the day.

The benchmark Nikkei fell 78.88 points to 9,588.38 after a 2.1 percent rally in the previous session, but still managed to end above its 13-week moving average near 9,577.