Daily Open: U.S. stocks fall; 10-year Treasury yield drops below 4%; Apple beats Street while Amazon falters

This report is from today's CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe  here .

Stocks retreat
U.S. stocks fell sharply on Thursday as weaker-than-expected jobs and manufacturing data sparked concerns about a rapid economic slowdown. The Dow Jones Industrial Average lost nearly 500 points to close 1.21% lower, the S&P 500 shed 1.37% while the Nasdaq Composite dropped 2.3%. The small-cap Russell 2000 index dropped 3%. Market sentiment headed south after a Labor Department report showed initial jobless claims at its highest since August last year, while the Institute for Supply Management's index of U.S. factory activity contracted further in July. Gold rose while oil futures fell.

Treasurys gain
The benchmark 10-year Treasury yield fell below 4% for the first time since February as investors digested weak job numbers and braced for a September rate cut by the U.S. Federal Reserve. The 10-year yield last traded at 3.981%, down 12.3 basis points, while the two-year yield eased to 4.156%. Treasury yields and prices move in opposite directions.

Services boost Apple
Apple's quarterly results beat estimates as services revenue and iPad sales jumped. Total revenue rose 5% to $85.78 billion, coming in slightly ahead of consensus, while earnings per share of $1.40 was higher than the Street's estimate of $1.35. Looking ahead, Apple expects services to grow by about 14%. Apple CEO Tim Cook told CNBC's Steve Kovach the company has increased spending on Apple Intelligence to get it ready by fall. Apple shares inched higher in extended trading.

Amazon falls short
Amazon shares slid as much