Stocks fell on Thursday as an increasing number of U.S. coronavirus cases raised concerns over the health of the economy heading into year-end.
The Dow Jones Industrials collapsed 317.46 points, or 1.1%, to 29,080.17.
The S&P 500 fell 35.65 points, or 1%, to 3,537.01
The NASDAQ gave up gains and instead plunged 76.84 points, to 11,709.59.
Travel and bank stocks were among the biggest laggards on Thursday. United Airlines fell more than 4%, while Carnival dropped 7.9%. JPMorgan Chase, Citigroup and Wells Fargo were all down more than 1%.
Thursday’s decline left the S&P 500 just 0.8% above its Friday closing level of 3,509.44, giving back most of the gains from the vaccine rally earlier this week.
The major averages turned sharply lower after Federal Reserve Chairman Jerome Powell said the U.S. economic outlook remained uncertain even after this week’s positive vaccine news.
Thursday’s moves came as the number of coronavirus cases continues to rise. On Wednesday alone, more than 144,000 infections were confirmed in the U.S.
More positive news on the vaccine front could come soon, as Moderna announced on Wednesday evening that its phase-three trial had accrued enough cases of the coronavirus to submit the preliminary results to an independent safety monitoring board.
The positive news for vaccines comes amid a worrying rise in Covid-19 cases across the country. The United States has now confirmed more than 10 million cases of the virus and some areas, including New York City and San Francisco, have announced new economic restrictions in an attempt to slow the spread.
On the data front, the U.S. Labor Department reported initial weekly jobless claims fell last week to 709,000 from 757,000 in the prior week. That marked the fourth straight weekly decline for initial claims.
Prices for the 10-Year Treasury gained ground, lowering yields to 0.89% from Tuesday’s 0.96%. The bond markets were closed Wednesday for Veteran’s Day. Treasury prices and yields move in opposite directions.
Oil prices fell 40 cents to $41.05 U.S. a barrel.
Gold prices improved $13.60 to $1,875.20