Dow falls 400 points as traders weigh the first jobless-claim increase since March against stimulus hopes
stocksslipped on Thursday as weekly jobless claims rose for the first time since March.
- Investors are also watching for signs that Congress will announce more stimulus measures to replace the $600 weekly unemployment benefit set to expire at the end of July.
- Shares of Tesla and Twitter climbed following positive earnings results. Tesla pared gains later in the day.
- Read more on Business Insider.
US stocks slid on Thursday as investors digested the first rise in weekly jobless claims since March.New US weekly jobless claims totaled 1.42 million in the week that ended on Saturday, the Labor Department reported. That was above the consensus economist estimate of 1.3 million compiled by Bloomberg. It also exceeded the prior week's 1.3 million filings, the first increase in 15 weeks.
- S&P 500: 3,233.40, down 1.3%
- Dow Jones industrial average: 26,624.65, down 1.4% (380 points)
- Nasdaq composite: 10,469.74, down 2.3%
Investors also watched for signs that Congress will announce more stimulus measures to replace the $600 weekly unemployment benefit set to expire at the end of July.On Wednesday evening, Senate Republicans announced that they'd reached a tentative agreement with the White House on legislation, setting the stage for talks with Democrats. Read more: Jefferies is making 2 major shifts to its stock-investing strategy as the US lags a broader economic recovery. Here's how the firm says the new trades will help investors crush the market.
Earnings season continued. Shares of Tesla jumped after the company reported quarterly results that exceeded Wall Street's expectations, but pared gains later in the afternoon to trade down more than 6%. The company also posted its fourth consecutive quarterly profit, a key milestone for inclusion in the S&P 500 index.
Shares of Twitter climbed after the company reported record user growth in the second quarter. Microsoft shed more than 3% after its cloud computing and software business missed analyst expectations for revenue.Big tech company stocks were under pressure Thursday. Shares of Facebook, Apple, Amazon, Netflix, and Google — the so-called FAANG stocks— all shed more than 2%.