As of 2:30 p.m. Eastern, the Dow Jones Industrial Average was on pace for its worst day since a March selloff prompted by the nation’s initial coronavirus shutdowns.
Business Insider reports: A much-feared second wave of COVID-19 infections is becoming likelier in some states as reopening efforts continue. Texas reported its third straight day of record coronavirus hospitalizations, while Florida notched its worst weekly increase in cases. Arizona and California also revealed spikes in new cases. The surging case counts pushed the US total above 2 million. Traders also weighed Fed Chair Jerome Powell’s comments on Wednesday; he said the pandemic could result in permanent economic damage and an extended period of high unemployment. He cautioned that, despite May’s better-than-expected jobs report, “it’s a long road” to a labor-market recovery.
President Trump responded with a late-morning tweet attacking the Fed.
“The Federal Reserve is wrong so often. I see the numbers also, and do MUCH better than they do. We will have a very good Third Quarter, a great Fourth Quarter, and one of our best ever years in 2021. We will also soon have a Vaccine & Therapeutics/Cure. That’s my opinion. WATCH!” Trump wrote.
More from CNBC: The 30-stock Dow traded 1,544 points lower, or 5.7%. The S&P 500 slid 4.5% while the Nasdaq Composite dropped 3.8%. Thursday’s losses also put the Dow on pace for its first three-day losing streak in a month. The S&P 500 was headed for its longest losing streak since early March. “You’re seeing the psychology in the market get retested today” as traders weigh the the recent uptick in coronavirus hospitalizations and a grim outlook from the U.S. central bank, said Dan Deming, managing director at KKM Financial. “The sense is maybe the market got ahead of itself, which makes sense given the fact that we’ve come so far so fast. The reality is this thing’s going to linger longer than probably the market had through of.”
CNN reports: The rising number of coronavirus cases in the United States has unnerved Wall Street. A second wave of infections could force many businesses to close again just after they reopened.Treasury Secretary Steven Mnuchin said the US economy wouldn’t be shut down again despite the rising case count. “We can’t shut down the economy again. I think we’ve learned that if you shut down the economy, you’re going to create more damage, and not just economic damage, but there are other areas,” he told CNBC in an interview. Mnuchin said more than a trillion dollars would be pumped into the economy over the next month.
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