Dow sinks 317 points as fresh lockdowns and stimulus gridlock slow post-election rally

• US stocks tumbled on Thursday as soaring COVID-19 cases and new economic restrictions offset remaining optimism from Pfizer's vaccine announcement.
• At least 142,755 new coronavirus cases were reported in the US on Wednesday, according to The New York Times, marking the second straight day of record increases.
• Some cities have implemented new restrictions to curb the virus's spread, renewing fears of a second widespread lockdown.
• In economic data, new US jobless claims fell to 709,000 for the week that ended Saturday. Economists surveyed by Bloomberg expected the Labor Department to report 731,000 new claims.
• Oil prices slid. West Texas Intermediate crude declined as much as 1.4%, to $40.87 per barrel.
• Watch major indexes update live here.

US equities slipped on Thursday as the week's vaccine rally faded and new lockdowns slam risk appetites.

At least 142,755 new COVID-19 cases were reported in the US on Wednesday, according to The New York Times, marking the second straight day of record increases. US cases spiked above 10 million for the first time earlier in the week, and cities including New York and San Francisco have already implemented new restrictions to slow the virus's spread.

While hopes for Pfizer's experimental vaccine lifted investor sentiments earlier in the week and drove a move into value stocks, continually soaring case counts have shifted focus back to the virus and potential nationwide lockdowns. Energy and materials stocks tumbled the most, while consumer staples and communications names outperformed.

Here's where US indexes stood at the 4 p.m. ET market close on Thursday:

• S&P 500: 3,537.01, down 1%
• Dow Jones industrial average: 29,080.17, down 1.1% (317 points)
• Nasdaq composite: 11,709.59, down 0.7%

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Hopes for near-term stimulus were largely dashed after Bloomberg reported the White House is giving up on stimulus talks and deferring to Senate Majority Leader Mitch McConnell for negotiations. While McConnell previously said he is open to passing a stimulus bill before the new year, Democrats and Republicans remain more than $1 trillion apart in their respective proposals' price tags and show no signs of budging.

Thursday's slide comes after tech stocks led most of the market higher on Wednesday. The Dow closed just 0.07% lower, and the S&P 500 ended the session just below record highs.

"Tech stocks might as well be picking petals off a flower, saying 'investors love me, they love me not,'" JJ Kinahan, chief market strategist at TD Ameritrade, said in a statement. "Investors should consider guarding against overvaluation, which can be hard to do for those who have FOMO on further gains."

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In economic data, new US jobless claims beat estimates and pointed to a steady pace of labor-market improvement. New filings for unemployment benefits fell to 709,000 for the week that ended on Saturday, according to the Labor Department. The reading marks a significant decline from the prior week's total and handily beats the consensus economist estimate of 731,000. Initial claims have declined for four weeks straight but remain at relatively elevated levels.

Continuing claims, which track the aggregate total of Americans receiving unemployment benefits, fell to roughly 6.8 million for the week that ended October 31. The reading came in slightly below economist forecasts.

"Continuing claims for regular benefits extended their decline, but that positive trend continues to be partly offset by the rise in the number of unemployed individuals who have exhausted those benefits, evidence of more long-lasting labor market scarring," Nancy Vanden Houten, lead US economist at Oxford Economics, said.

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Moderna gained after announcing it has enough data to begin the first interim analysis of its coronavirus vaccine's effectiveness. Separately, Anthony Fauci, the US's leading infectious-disease expert, said he was optimistic about Moderna's upcoming trial data.

Fox Corp. sank after President Donald Trump retweeted support for rival outlets Newsmax and OANN. Axios reported Thursday that Trump may create a media empire of his own to compete with Fox.

Bitcoin surged above $16,000 for the first time since January 2018 as the cryptocurrency's rally resumed. The token has broken above several key resistance levels in recent weeks but remains a ways away from retaking its all-time high of nearly $20,000.

Spot gold gained as much as 1%, to $1,883.93 per ounce, at intraday highs. The US dollar traded mixed against a basket of peer currencies and Treasury yields dipped.

Oil prices slid. West Texas Intermediate crude fell as much as 1.4%, to $40.87 per barrel. Brent crude, oil's international benchmark, dipped 1.1%, to $43.30 per barrel, at intraday lows.

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