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Dow Drop 150 Points After Unemployment Claims Up 1 Million

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Key Points

  • The market opened lower, with stocks dropping for the second day in a row after another 1.1 million Americans filed for unemployment in the coronavirus pandemic.
  • The Dow Jones Industrial Average fell by 0.5%, about 150 points, while the S&P 500 dropped by 0.4% and the tech-heavy Nasdaq Composite declined by less than 0.1%.
  • Sentiment was hit by negative economic data: Last week’s jobless claims soared to 1.1 million, more than the 920,000 predicted, the Labor Department reports.
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On Thursday, the market opened lower, with stocks dropping for the second day in a row after another 1.1 million Americans filed for unemployment in the coronavirus pandemic.

At Thursday’s opening, the Dow Jones Industrial Average fell by 0.5%, about 150 points, while the S&P 500 dropped by 0.4% and the tech-heavy Nasdaq Composite declined by less than 0.1%.

Sentiment was hit by negative economic data: Last week’s jobless claims soared to 1.1 million, more than the 920,000 predicted, the Labor Department reports.

The sharp increase from the preceding week’s 963,000 claims shows just how fragile the job market still is as the coronavirus continues to weigh heavily on the US economy.

However, the market has reversed some of its early losses, after news of upcoming US-China trade talks.

On Thursday, China’s ministry of commerce announced that trade officials from both sides would resume negotiations and review the phase one trade deal over the coming days.

Chipmaker Nvidia’s shares, meanwhile, rose 1 percent after the company reported blowout earnings—with a last quarter revenue jump of 50 percent.

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