Stocks Dropped at Open as Fed, Virus Cases Fueled Concern

U.S. stocks opened sharply lower on Thursday, following the Federal Reserve’s monetary policy decision, as investors worried about coronavirus cases rising again. The Dow Jones Industrial Average lately dropped 743.80 points, or 2.76%, to 26,246.19. The S&P 500 fell 77.00 points, or 2.41%, to 3,113.14. The Nasdaq Composite retreated 214.36 points, or 2.14%, to 9,805.99.

Crude-oil futures tumbled Thursday morning, as a report on rising U.S. inventories, evidence of climbing cases of coronavirus, and a gloomy economic outlook from the Federal Reserve combined to undermine the recovery from historic lows seen in April. West Texas Intermediate crude for July delivery was down $2.70, or 6.8%, at $36.89 a barrel. Brent oil for August delivery retreated $2.48, or 6%, at $39.26 a barrel.

The number of U.S. coronavirus infections passed the two million mark and over 112,000 Americans have died, according to Johns Hopkins University. Despite fewer cases being recorded in some cities and states, the seven-day average of new cases over the last two weeks is still rising in more than 20 states.

An additional 1.542 million Americans filed for unemployment benefits in the week ending June 6, the government said. Weekly initial jobless claims have decelerated for 10 consecutive weeks. Over the past 3 months, more than 44 million Americans have filed for unemployment insurance.