Despite the pullback in sales, home prices continued to rise last month.
Oil prices are down, and stocks are up, though such moves have been quick to change since the war in Iran began.
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%.
Chip companies helped drive the gains on hopes for more big spending by Amazon and other customers building out their AI offerings.
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.