Dow Falls 150 Points After Unemployment Claims Surge Back Above 1 Million

TOPLINE

The market opened lower on Thursday, with stocks falling for a second day in a row after another 1.1 million Americans filed for unemployment amid the coronavirus pandemic.

KEY FACTS

Key background

The S&P 500 finished at a record closing high on Tuesday, officially ending the 2020 bear market. The index briefly hit a new intraday record high on Wednesday, but stocks turned negative late in the day after the Federal Reserve released the minutes from its July meeting. Fed officials said that the coronavirus pandemic will continue to “weigh heavily” on the U.S. economy, which continues to remain “well below” of its pre-pandemic levels.

Big number: 28 million

That’s how many people are receiving some form of government unemployment benefits, according to the Labor Department.

Crucial quote

“Even amidst the worst labor market in modern history, Congress has not agreed to extend emergency unemployment benefits or the moratorium on evictions… politicians should focus on Main Street,” says Ron Temple, head of U.S. equity at Lazard Asset Management. “The absence of $17 billion per week of jobless benefits as well as protection from eviction is likely to cause negative repercussions for the broader economy if not corrected.”

What to watch for

A great deal of uncertainty still remains around the next coronavirus stimulus bill in Washington: Treasury Secretary Steven Mnuchin recently criticized top Democrats for failing to “strike a reasonable deal,” but also suggested that talks could resume this week.

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