The losses came on the heels of a sharp sell-off Wednesday when investors worried a new U.S. budget deal raised the chance that the Federal Reserve might start to scale back its support for the economy soon.
More economic data has investors attempting to figure out how that would impact the Fed's decisions ahead of its policy meeting next week.
The Department of Labor said initial jobless claims rose to 368,000 last week, higher than what economists were expecting.
Retail sales ticked up from the previous month, according to the Census Bureau, slightly beating Wall Street estimates.
Stocks often enjoy a nice rally in December but after a record-breaking run for the Dow and S&P 500, the so-called Santa Claus rally has yet to materialize. The S&P 500 has fallen 1.5% so far this month.
In another sign that December may not deliver strong returns, CNNMoney's Fear and Greed index, which tracks the VIX ( and six other gauges of market sentiment, slipped into Fear territory. It was in Greed mode just a week ago. )
What's moving: Hilton Worldwide ( surged over 7% Thursday as the hotel chain began trading on New York Stock Exchange. The hotel chain )raised $2.4 billion through an initial public offering. Food services company Aramark ( also went public, raising $725 million. Shares jumped more than 13%. )
Although Hilton's debut went pretty well, one StockTwits trader had mixed feelings on the stock.
But StockTwits user DTB111 was ecstatic about the stock.
"$HLT got Hilton and holding super long! What a great day! " she said.
Shares of Lululemon ( tanked more than 11% after the yogawear producer reported earnings and revenue that beat forecasts, but )dimmed its outlook.
But another trader noted the previous ups and downs in the company's stock price and thinks it's a good time to buy.
"amazed if doesn't do what it did that last three times this happened, jump right back up, so always best to buy low.," said T1ST.
The social network may also have benefited from its announcement Thursday that users can now send private photos to one another over Instagram. Facebook bought Instagram last year. One trader quipped that Facebook must be nervous about how some younger users may be flocking to rival services generating a lot of buzz ... most notably Snapchat.
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