Stocks Opened Lower after Unemployment Claims Surged

U.S. stocks opened lower on Thursday after new data on the U.S. labor market underscored rising joblessness amid the coronavirus outbreak, and after the European Central Bank announced a massive stimulus plan aimed at helping mitigate economic damage in the region. The Dow Jones Industrial Average lately fell 571.56 points, or 2.87%, to 19,327.36. The S&P 500 was off 62.83 points, or 2.62%, to 2,335.27. The Nasdaq Composite declined 89.60 points, or 1.28%, to 6,900.25.

Oil prices bounced off their lowest levels in 20 years on Thursday, as investors absorbed a huge influx of central bank and government support measures against economic fallout from the coronavirus and Russia indicated it would like to see higher prices. The front-month April West Texas Intermediate crude contract rose $2.71, or 13.3%, to $23.07 a barrel. May Brent crude rose $1.33, or 5.3%, to $26.21 a barrel.

The number of Americans who applied for unemployment benefits surged by 70,000 in mid-March to a 2- 1/2-year high as the coronavirus shut down large sections of the economy. Initial jobless claims climbed to a seasonally adjusted 281,000 from 211,000 in the seven days ended March 14, the government said Thursday.

The European Central Bank launched a so-called Pandemic Emergency Purchase Program (PEPP), comprising 750 billion euros ($818 billion) worth of debt purchases aimed at helping the floundering regional economy amid the coronavirus outbreak.