NEW YORK (TheStreet) -- Stocks fell to session lows after briefly flirting with positive territory Thursday morning. The International Monetary Fund gave markets a short-lived shot in the arm after calling upon the Federal Reserve to delay a rate hike until the first half of 2016.
The S&P 500 was down 0.38%, the Dow Jones Industrial Average fell 0.42% and the Nasdaq slid 0.24%.
The IMF said Thursday the Fed should wait until there are stronger signs of wage or price inflation in its annual review of the U.S. economy. The Fed is widely expected to raise rates from near-zero crises levels in September.
"Based on the mission's macroeconomic forecast, and barring upside surprises to growth and inflation, this would put lift-off into the first half of 2016," the IMF said in its report.
Dish Network (DISH) spiked more than 5% on reports the company is discussing a potential merger with T-Mobile (TMUS). Discussions are in their early stages, according to The Wall Street Journal. T-Mobile shares added 4.4%.
European markets were selling off as a global bond rout continued. German 10-year Bund yields hit a high of 0.995% earlier in the session, while U.S. 10-year bond yields jumped to 2.37%. The bond market has been in focus since European Central Bank President Mario Draghi made comments on Wednesday that volatility would remain.
Initial jobless claims in the U.S. fell by 8,000 to 276,000 in the week ended May 30, hovering at 15-year lows, according to the Labor Department. Economists had expected the number of people applying for unemployment benefits to fall at a slower pace to 278,000. The less-volatile four-week moving average increased 2,750 to 274,750.