Dow Loses 100 Points As Another 2.4 Million Americans File For Unemployment

TOPLINE

The stock market finished lower on Thursday, but losses were small considering another 2.4 million workers filed for unemployment, as investors continue to look ahead to a reopening of the country and economic recovery.

KEY FACTS

Key background

It has been a volatile week for the market so far. Stocks jumped on Monday, fell on Tuesday and rose again on Wednesday. After the market rose more than 1.5% in Wednesday’s session, the S&P 500 hit its highest level since March 6, before the coronavirus downturn. All three major indexes are up at least 3% for the week.

Crucial quote

“With a ninth straight week of new weekly jobless claims being counted in the millions, although at a lower level than before, one might be tempted to focus on the continuing decline,” says Mark Hamrick, senior economic analyst for Bankrate. “But at 2.4 million new claims last week, the seismic impact should not be dismissed because earlier shock waves were larger.”

What to watch for

There has been rising pushback against China among U.S. lawmakers, over trade and other issues related to the coronavirus pandemic. The Senate, by unanimous consent on Wednesday, passed legislation that would ban many Chinese companies from listing shares on U.S. stock exchanges. Entitled the Holding Foreign Companies Accountable Act, the bill would delist Chinese companies from the Nasdaq, NYSE and other exchanges for failing to follow U.S. securities laws. Those tensions have also been amplified in recent weeks by President Donald Trump, who has accused China of being the main culprit behind Covid-19. He again criticized the country about its handling of coronavirus on Wednesday, blaming its “incompetence” for “this mass Worldwide killing.” His hard-line stance on China in recent weeks has some experts worried about a derailment of the phase one trade deal—something Trump has repeatedly threatened to do.

Big number: Over 5 million

Global cases of coronavirus have now surpassed that milestone, according to data from Johns Hopkins University. The United States has more than 1.5 million cases confirmed so far.

Further reading

Best Buy Earnings Fall, Target Sales Soar: Here’s How All The Big Retailers Fared In The First Quarter (Forbes)

Dow Jumps Nearly 400 Points As Amazon And Facebook Hit New Record Highs (Forbes) 

Chinese Companies Must Play By American Rules Or Be Banned From U.S. Exchanges, Senate Rules (Forbes) 

Dow Falls 400 Points As Questions Are Raised Over Moderna’s Coronavirus Vaccine (Forbes)

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