Stocks Dropped at Open amid Lingering Trade Worries

U.S. stocks dropped at open on Thursday as further signs of a protracted trade war between the U.S. and China weighed on risk assets. The Dow Jones Industrial Average lately lost 361.00 points, or 1.40%, to 25,415.61. The S&P 500 fell 34.85 points, or 1.22%, to 2,821.42. The Nasdaq Composite retreated 107.40 points, or 1.39%, to 7,643.44.

The U.S. oil benchmark on Thursday tumbled nearly 3%, as a broad aversion to assets perceived as risky gripped global markets, also knocking down equities. West Texas Intermediate crude for July delivery was off $1.78, or 2.9%, at $59.64 a barrel. July Brent was off $1.79, or 2.5%, at $69.08 a barrel.

Filings for U.S. unemployment benefits unexpectedly dipped to a five-week low, offering a fresh sign the job market remains historically tight amid other mixed signals on the economy. Jobless claims fell 1,000 to 211,000 in the week ended May 18, according to Labor Department figures released Thursday.

Chinese officials and news outlets over the past day have amplified their criticism of the U.S. and its trade tactics. Chinese Ministry of Commerce spokesperson Gao Feng said that the U.S. must “adjust its wrong actions” before further trade negotiations can continue, CNBC reported.

L Brands (LB) topped consensus expectations in first-quarter results and provided strong guidance for the full year. The company posted adjusted earnings of 14 cents per share, versus expectations for the company to breakeven. Net sales of $2.63 billion beat estimates by $70 million.