US Markets

U.S. stocks declined Thursday, eroding some of the prior session's advance, as Federal Reserve Chairman Ben Bernanke's remarks failed to calm investor jitters over the state of the economy. The Dow Jones Industrial Average dropped 119.05 points, or 1.04%, to close at 11295.81, following a 276-point surge Wednesday. The Standard & Poor's 500-stock index ended down 12.72 points, or 1.01%, at 1185.90. The Nasdaq Composite dropped 19.80 points, or 0.78%, to 2529.14. After bouncing between small gains and losses for much of the session, stocks turned lower after Bernanke's speech in Minneapolis largely mirrored what was said at Jackson Hole, Wyo., at the end of last month.

Many traders had been hoping for more insight into the central bank's plans to support the economy at the meeting of the Fed's decision-making body Sept. 20-21. Financial and industrial stocks were weakest. J.P. Morgan Chase shed $1.31, or 3.8%, to 33.51, while Bank of America fell 28 cents, or 3.7%, to 7.20. Technology shares helped limit the blue-chip Dow index's losses.

Cisco Systems was the measure's strongest component, gaining 41 cents, or 2.6%, to 16.29, after the technology bellwether got an investment-rating upgrade to buy from hold by stock analysts at Auriga. Another batch of weak employment data contributed to the session's cautious tone. The number of people filing initial jobless claims rose to a seasonally adjusted 414,000 for the week ended Sept. 3.

European Markets

Markets in Europe closed higher Thursday at the end of a choppy trading session in which the European Central Bank cut its growth forecasts and signaled an end to rate increases, with resource stocks and banks posting some of the strongest gains. The Stoxx Europe 600 index closed up 0.7% at 230.47 after rallying 3% in the prior session as fears about European sovereign-debt woes abated somewhat and as bargain hunters picked up cheap stocks. The index had swung back and forth in afternoon trading as ECB President Jean-Claude Trichet told a press conference that downside risks for the economy had intensified, indicating further rate increases are off the table.

A slightly higher start for Wall Street, however, helped cement gains in Europe. Among the movers Thursday, shares in French oil major Total SA rose 2.5%. UBS upgraded the company to buy from neutral, saying the sector as a whole offers very good value. Bank stocks also gained, including a 1.9% rise for Credit Agricole SA. The French CAC 40 index closed up 0.4% at 3,085.85. The DAX 30 index ended the session up 0.1% at 5,408.46. Heavyweight auto group Daimler AG fell 1.8%, while Volkswagen AG fell 1.6%. Financials perked up, with shares of Deutsche Bank AG up 1.3% and Allianz AG up 1%. The Athens General Index slumped 4.6% to 886.77, led by Alpha Bank AE, down 13%, and National Bank of Greece SA, off 11%. German Finance Minister Wolfgang Schaeuble reportedly said Thursday that Greece would be denied the next tranche of its 2010 financial aid package unless it meets bailout agreements. Shares of U.K.-based Wm. Morrison Supermarkets PLC jumped 4.2% after reporting a profit rise of 14% for the six months ended July 31 and a 7.4% rise in turnover. Miners also rose, with Fresnillo PLC up 4.4% and Randgold Resources Ltd. gaining 3.8% as gold futures jumped. The FTSE 100 index closed up 0.4% at 5,340.38.

Asian Markets

Asian stock markets ended mostly higher Thursday on hopes of a new stimulus plan in the U.S., but the Hong Kong market fell as some financials weakened. Japan's Nikkei Stock Average ended the day up 0.3% at 8793.12 and South Korea's Kospi climbed 0.7% to 1846.64. Hong Kong's Hang Seng Index and China's Shanghai Composite Index both fell 0.7%, to 19912.82 and 2498.94, respectively. Banking shares declined in Hong Kong, with Industrial & Commercial Bank of China down 1%, and China Merchants Bank off 0.7%. HSBC Holdings PLC a heavyweight on the Hang Seng Index bucked the Chinese markets' downtrend, however, gaining 0.1% after announcing plans for 3,000 job cuts in its Hong Kong operations. Hong Kong-listed retailer Belle International Holdings dropped 8.5% after announcing that its chairman and management placed $471 million of shares. On the plus side, some oil and gas companies advanced after benchmark Nymex-crude futures hit a five-week high Wednesday, with Japan's Inpex up 4.5%.

Commodities

Base metals closed a touch higher on the London Metal Exchange Thursday, although gains were tentative as investors held their breath ahead of key speeches in the U.S. later in the global day. At the close, LME three-month copper was 0.2% higher at $9,114.50 a metric ton, while lead closed up 3.1% at $2,490/ton.

Crude futures settled slightly lower Thursday, wavering between gains and losses for most of the session as markets await President Barack Obama's address on the economy. Light, sweet crude for October delivery settled 29 cents, or 0.3%, lower at $89.05 barrel on the New York Mercantile Exchange. Brent crude on the ICE futures exchange closed $1.76 lower at $114.56 a barrel. Oil prices stalled in the push towards $90, held back by a decline in the stock market ahead of President Obama's speech on the economy later Thursday.

Obama is expected to announce a new jobs plan in his address to a joint session of Congress , which could amount to a stimulus of as much as $400 billion over the coming year. Gold futures settled higher, taking another stab at $1,900 an ounce, after the European Central Bank cut growth forecasts and U.S. jobless claims edged higher. A much anticipated speech by U.S. Federal Reserve Chairman Ben Bernanke took some of gold's shine, as he said inflation, one of the pillars of gold investing, was on its way down. Bernanke also refrained from hinting at any concrete steps toward economic stimulus. Gold for December delivery gained $39.90, or 2.2%, to settle at $1,857.50 an ounce on the Comex division of the New York Mercantile Exchange, snapping a two-day losing streak. The contract traded as high as $1,868.70 an ounce.