S&P 500 Turns Positive Despite Worse-Than-Expected Jobless Claims

The Dow Jones Industrial Average fell 0.15% on Thursday, while the S&P 500 was up 0.06% and the tech-heavy Nasdaq Composite gained 0.33%.

Stocks initially opened lower, with the Dow down 200 points, on the back of disappointing jobless claims data: Another 1.5 million Americans filed for unemployment in the week ending June 13—higher than the 1.3 million expected. 

Even though claims have fallen dramatically from their peak in March, when 6.9 million people filed in just one week, this week’s data underscores that the economy will not bounce back quickly after the coronavirus pandemic is over.

Investor sentiment has also taken a hit from fears of a resurgence in coronavirus infections across the country: Many states reopening—such as Arizona, Texas, Florida and California—are seeing record numbers of new cases.

Parts of the U.S. that have started reopening but are now seeing spikes in new cases are “on the cusp of losing control” over the virus and its spread, former FDA commissioner Dr. Scott Gottlieb warned CNBC.

“The rally of the past few months may have led to stocks reaching within striking distance of record highs, but investors are struggling to reconcile upward momentum and less optimistic messages about the months ahead,” according to Lindsey Bell, chief investment strategist for Ally Invest.

“That, along with concerns about a second wave of coronavirus and geopolitical tensions, has led to some serious indecisiveness,” she says.