Despite the pullback in sales, home prices continued to rise last month.
The S&P 500 dropped 1.6% after a report showed U.S. employers cut more jobs last month than they created.
The Dow lost as many as 1,160 points Thursday before finishing the day with a drop of 784, or 1.6%.
Last month’s hiring growth was up considerably from a meager gain of 36,000 jobs in October.
The number of Americans who quit their jobs fell below 3.1 million, the fewest since August 2020.
Some reports on the U.S. economy helped bolster hopes that it can manage to avoid a recession.
Weekly filings for unemployment benefits, which are a proxy for layoffs, remain low by historic standards.
The number of Americans filing for jobless benefits fell last week but remain at slightly elevated though not troubling levels.
Worries over the economy are front and center after a series of disappointing reports, including a weaker-than-expected jobs report on Friday.
Job postings in May rose slightly to 8.1 million, however, April’s figure was revised lower to 7.9 million.