Thursday's afternoon trade: stocks pare losses to turn flat; energy still lower

US stocks sharply cut their losses in afternoon trading and the Nasdaq rebounded after a steep decline earlier Thursday, but energy shares lagged the broader market. The S&P 500 was down 0.1 percent after dropping more than 1 percent at its session low. The benchmark index remains on track for its fourth straight daily decline, but has rebounded above its 150-day moving average, a level it hasn't closed under since November 2012.
The Russell 2000 index of small-cap shares reversed its earlier losses to trade up 0.5 percent. It is now down abut 9.5 percent from its record close, exiting correction territory, which is defined as a 10 percent drop from a peak. Energy shares continued to lag on the day, falling 0.9 percent even as crude oil turned flat. The sector was by far the weakest industry on the day. The Dow Jones industrial average was falling 24.57 points, or 0.15 percent, to 16,780.14, the S&P 500 was losing 3.81 points, or 0.2 percent, to 1,942.35 and the Nasdaq Composite was dropping 1.41 points, or 0.03 percent, to 4,420.67.