Stocks suffered their biggest one-day pullback in three months on Thursday as traders grew concerned about the number of coronavirus cases increasing in some states that are reopening up from lockdowns.
Shares that have surged recently on hopes for a smooth reopening of the economy led the declines.
The Dow Jones Industrials plummeted 1,861.82 points, or 6.9%, to 25,128.17.
Thursday’s losses handed the Dow its first three-day losing streak in a month and for its biggest one-day drop since April 1.
The S&P 500 shed 188.04 points, or 5.9%, to 3,002.10. The S&P 500 also logged in its first three-day losing streak since early March.
The NASDAQ sagged 527.62 points, or 5.3%, from Wednesday’s all-time high to 9,492.73.
The major averages posted their worst day since March 16, when they all dropped more than 11%.
Traders dumped airlines, cruise operators and retailers after piling into those names over the past month amid expectations of a swift economic recovery.
Shares of United Airlines, Delta, American and Southwest all dropped more than 11%. Carnival Corp. and Norwegian Cruise Line shares fell at least 15.3% each. Gap dwindled 8.1%, and Kohl’s shares closed lower by 11.2%.
Concerns about a second wave of coronavirus cases have risen as U.S. states push deeper into reopening. Texas has reported three consecutive days of record-breaking COVID-19 hospitalizations. AP said nine California counties are reporting a spike in new coronavirus cases or hospitalizations of confirmed cases.
To be sure, one official said states such as Arizona and Texas “never really got rid of the first wave,” and added: “It’s not a second wave.”
Weekly jobless claims rose by 1.5 million last week, slightly less than the Dow Jones estimate of 1.6%. Continuing claims, which reflect the number of people receiving unemployment benefits for at least two weeks, declined by 339,000 to 20.9 million.
Prices for the 10-Year Treasury leaped, lowering yields to 0.67% from Wednesday’s 0.74%. Treasury prices and yields move in opposite directions.
Oil prices sank $3.39 to $36.21 U.S. a barrel.
Gold prices regained $13.60 to $1,734.30 U.S. an ounce.