Dow drops more than 250 points amid global economic recovery concerns, S&P 500 slides
The major U.S. stock indexes fell Thursday on concerns about the global economic comeback from Covid-19. The losses came as Japan declared a state of emergency in Tokyo for the upcoming Olympics and as countries deal with a rebound in cases due to Covid variants.
The Dow Jones Industrial Average dropped 259.86 points, or 0.75%, to 34,421.93.
The S&P 500 lost 0.86% to close at 4,320.82.
The Nasdaq Composite fell 0.72% to 14,559.78.
Both the S&P 500 and Nasdaq Composite closed at records in the prior session because of gains from tech shares. Stocks closed off their lows of the day, which saw the Dow down as much as 536 points.
The Labor Department’s latest jobless claims data came in unexpectedly higher at 373,000, signaling a possible slowdown in the the labor picture amid the Covid recovery. Economists expected to see 350,000 first-time applicants for unemployment benefits for the week ended July 3, according to Dow Jones.
Losses were led by companies that would benefit from a rapid economic comeback from the virus.
Investors rotated into the safety of Treasuries further on Thursday, pushing the yield on the 10-year Treasury to 1.25%, the lowest since late February.
Reference: CNBC
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