Mumbai, March 7 -- The Nasdaq plummeted 483.48 points (2.6%) to 18,069.26, the S&P 500 plunged 104.11 points (1.8%) at 5,738.52 and the Dow slumped 427.51 points (1%) to 42,579.08.

The Labor Department released a report showing first-time claims for U.S. unemployment benefits fell by more than expected in the week ended March 1st. The report said initial jobless claims dipped to 221,000, a decrease of 21,000 from the previous week's unrevised level of 242,000. On Friday, the Labor Department is scheduled to release its more closely watched report on employment in the month of February.

The Commerce Department also released a report showing the U.S. trade deficit widened by more than expected in the month of January. The report said the ...