Dow slides 420 points after virus fears outweigh positive jobless claims data

Major US indexes erased early gains and declined on Thursday after traders looked past positive jobless claims data and grew more concerned about the US’s coronavirus resurgence.

Unemployment-insurance claims last week totaled 1.3 million, the Labor Department announced Thursday, down 99,000 from the week before. Economists surveyed by Bloomberg had expected a reading of 1.38 million.

US virus cases surpassed 3 million on Wednesday, prompting new concerns of a longer-than-expected recession. Stocks turned lower after Florida, the nation’s virus hotspot, reported a record in COVID hospitalizations. Coronavirus deaths also jumped a record amount.

Here’s where US indexes stood at 11:15 a.m. ET on Thursday:

Read more: Wall Street is being shaken to its core by a legion of Gen Z day-traders. From a casual hobbyist to a 20-year-old running a 14,000-person platform, meet the new generation of retail investors.

Walgreens shares led the Dow lower. The drugstore chain plummeted after reporting a $1.7 billion loss in the third quarter. Adjusted earnings per share also missed expectations, landing at 83 cents to analysts’ $1.19.

Oil prices slid. West Texas Intermediate crude fell as much as 4%, to $39.27 per barrel. Brent crude, oil’s international benchmark, fell 3.1%, to $41.93 per barrel, at intraday lows.

Investors have largely looked through a spike in US coronavirus cases and pushed equity prices higher over the week. Stocks gained on Wednesday as a tech rally overshadowed falling travel stocks. Amazon, Microsoft, and Alphabet all turned higher through the session, and Apple reached an all-time high.

Now read more markets coverage from Markets Insider and Business Insider:

GOLDMAN SACHS: Wall Street is bracing for a historically wild stock market as the presidential election nears. Here’s a surprising yet simple strategy for protecting your portfolio — regardless of outcome.

Dogecoin volumes spike 683% after viral TikTok challenge urges buying spree

Leave a Comment

Your email address will not be published. Required fields are marked *