NEW YORK – Concerns that China will take steps to slow its economic expansion sent commodities and materials stocks lower Thursday.

China reported that its economy expanded 10.3 percent in 2010. Economists expect that China’s central bank will increase interest rates to slow down growth and keep inflation in check.

Oil and copper fell more than 2 percent. Silver fell 5 percent.

Freeport-McMoRan Copper & Gold Inc. dropped 4 percent even after the mining giant reported 60 percent higher income in the fourth quarter as a result of higher copper and gold prices. DuPont fell 1.6 percent and Dow Chemical Co. fell 2.5 percent.

The decline in commodities was tempered by slightly better news on the U.S. job market. The Labor Department reported that the number of people filing initial claims for unemployment benefits fell to 404,000 last week, below forecasts.

The better economic news pushed bond prices lower. The yield on the 10-year Treasury note rose to 3.43 percent, from 3.34 percent late Wednesday. Yields and prices move in opposite directions.

The Dow Jones industrial average fell 2.49 points, or less than 0.1 percent, to 11,822.8.

The Standard & Poor’s 500 index lost 1.66, or 0.1 percent, to 1,280.26. The technology-focused Nasdaq composite index fell 21.07, or 0.8 percent, to 2,704.29.

Materials stocks lost 1.5 percent, the most out of the 10 company groups that make up the S&P 500. Utility companies rose the most, 0.6 percent.