US stocks fluctuate as investors digest surging virus cases and steady jobless claims
- US stocks whiplashed Thursday as investors weighed eased banking regulations against spiking coronavirus cases and new economic data.
- States such as Texas, Florida, and Arizona have seen spikes in COVID-19 cases, and there's been an uptick in cases globally.
- US weekly jobless claims totaled 1.5 million in the week that ended on Saturday, roughly in line with the previous week and slightly above economists' forecasts.
- Read more on Business Insider.
US stocks whipped between slight gains and losses Thursday in a volatile trading session as investors watched spiking coronavirus cases that could threaten the economic recovery.
Coronavirus cases have spiked in states such as Texas, Florida, Arizona, and California, threatening to slow economic-reopening efforts across the US. Global cases of COVID-19 are also on the rise.
"Whether we're seeing a second wave or just a continuation of the first wave, the outbreak may reverse actions taken by governments to re-open their economies, hence curbing hopes of a smooth recovery," said Hussein Sayed, the chief market strategist at FXTM.
US weekly jobless claims totaled 1.5 million in the week that ended on Saturday, roughly in line with the previous week and slightly above economists' forecasts.
Here's where US indexes stood at 12:00 p.m. ET on Thursday:
- S&P 500: 3,053.95, up 0.08%
- Dow Jones industrial average: 25,485.04, up 0.14% (40 points)
- Nasdaq composite: 9,939.01, up 0.31%
Stocks briefly reversed losses mid-morning when the Office of the Comptroller of the Currency approved changes to the Volcker rule that will make it easier for banks to invest in fund such as venture capital and did away with a requirement that lenders have to hold margins to guard against certain derivative trades.
Shares of Wirecard fell 75% after the German payments company filed for insolvency, the latest in the fintech's $2 billion accounting-scandal saga.
Oil prices followed equities lower. West Texas Intermediate crude fell as much as 2.5%, to $37.08 per barrel. Brent crude, the international benchmark, declined 2.1%, to $39.47 per barrel, at intraday lows.
The so-called reopening trade suffered on fears of surging coronavirus cases, with shares of cruise lines and airlines falling in early trading.
Apple on Wednesday announced that it would close more of its stores in the Houston area following a spike in cases. Additionally, Disney said it would delay the opening of its parks in California beyond July 17.