U.S. stocks ended sharply lower on Thursday, with the Dow Jones Industrial Average posting biggest one-day fall in three months, as investors mainly focused on earnings from retail giant Wal-Mart.

The Dow Jones Industrial Average lost 274.14 points, or 1.24 percent, to 21,750.73. The S&P 500 shed 38.10 points, or 1.54 percent, to 2,430.01. The Nasdaq Composite Index was down 123.19 points, or 1.94 percent, to 6,221.91.

Shares of Wal-Mart dropped almost 2 percent on Wednesday, after the company posted financial results in the second quarter.

Retails concluded their earnings season and showed mixed results. But some analysts said the negative sentiment is spilling across the retail sector.

On the economic front, in the week ending Aug. 12, the advance figure for seasonally adjusted initial claims was 232,000, a decrease of 12,000 from the previous week's unrevised level of 244,000, the U.S. Labor Department said Thursday.

The 4-week moving average was 240,500, a decrease of 500 from the previous week's unrevised average of 241,000.

U.S. Federal Reserve reported industrial production rose 0.2 percent in July following an increase of 0.4 percent in June.

"Falling motor vehicle and parts production weighed on overall manufacturing production in July," said Sophia Kearney-Lederman, economic analyst at FTN Financial.

Meanwhile, U.S. President Donald Trump said Wednesday that he was disbanding both the Manufacturing Council and Strategy and Policy Forum, as business leaders resigned from the council over his remarks on Charlottesville violence.

Investors paid attention on the news, which has weighed on the market.

Traders also kept a close eye overseas, as 13 people were killed, 80 others injured and hospitalized with 15 of them in serious condition in Barcelona terror attack on Thursday afternoon.