Stock market live updates: Futures sharply lower, awaiting jobs data, second wave of cases?

Finance news

A trader walks in front of the New York Stock Exchange on May 26, 2020 at Wall Street in New York City.

Johannes Eisele | AFP | Getty Images

This is a live blog. Check back for updates.

7:24 am: Reopening plays fall in premarket trading

Companies expected to benefit from the economy reopening fell in premarket trading after data showed a spike in cases in states that started loosening restrictions. Airlines, cruise operators and brick and mortar retailers tumbled before the opening bell. Shares of American Airlines and Delta Air both dropped more than 12% in premarket trading. United Airlines fell 13%. Southwest and Alaska Air dropped 10% and 11%, respectively. Cruise ship company Carnival cratered nearly 12% and Norwegian and Royal Caribbean fell 14% and 13%, respectively. Physical retailers ticked lower as well with Michaels dropping 14% and Kohl’s and TJX Companies falling 9% and 3%, respectively. Nordstrom dropped 7% in premarket trading. The reopening trades have been leading the market higher recently but investors are now pivoting back to trusty technology darlings. — Fitzgerald

7:21 am: Fed sees sharp downturn this year, promises to keep aid coming

The Federal Reserve pointed to a protracted slowdown ahead and pledged to do what it can to help the economy recover from the coronavirus. While keeping short-term interest rates anchored near zero, the central bank also said Wednesday it will continue buying at least $120 billion of bonds a month. Fed officials estimate that GDP will fall 6.5% in 2020 then bounce back to a 5% gain next year and 3.5% in 2022. Chairman Jerome Powell said that the burden from the shutdown has impacted those at the bottom end of the economic spectrum, and the Fed will do what it can to help. Along with the bond purchases, the Fed has implemented a series of programs aimed at market functioning and lending to businesses in need. “We will continue to use those powers forcefully, actively and aggressively until we are convinced that we are solidly on the road to recovery,” Powell said. – Cox

7:14 am: U.S. coronavirus cases top 2 million

U.S. coronavirus cases have surpassed 2 million as states begin to reopen their economies, which has led to fears of a second wave of cases. Texas, which was among the first wave of states to ease lockdown restrictions, has reported three straight days of record-breaking hospitalization numbers. Across the U.S., cases have gradually been rising since Memorial Day weekend. Global cases now stand at more than 7.36 million. – Stevens

7:04 am: Latest read on the economy with jobless claims

Investors are looking to the release of the latest jobless claim numbers at 8:30 a.m. ET for a read on the state of the economy. Economists polled by Dow Jones are expecting 1.595 million claims, which would represent a slowdown in the number of new people filing. Data released last Thursday showed that 1.877 million people had filed claims in a sign that the worst is over for the coronavirus-related job crisis, although the number remains high by historical standards. Additionally, the number of continuing claims, which provides a clearer picture of how many Americans remain unemployed, continues to creep higher. Since March more than 42 million people have filed for unemployment insurance. – Stevens

6:44 am: Stock futures sharply lower

U.S. stock index futures pointed to a sell-off at the start of trading on Thursday as fears over a second wave of coronavirus cases sent the major averages tumbling. The Dow Jones Industrial Average was slated to open 560 points lower for a loss of 2%. The S&P 500 was poised to drop 1.7%, while the Nasdaq Composite was set to shed 1.4%. Stocks sensitive to the economy’s reopening, which have been sharply higher in recent sessions, led the premarket declines.

The S&P 500 is on track for its third straight day of losses and is once again negative for the year. Earlier in the week the benchmark index briefly turned positive for 2020 before the rally took a breather. Still, the S&P 500 is now just 6% below its February record high. Meanwhile the Nasdaq Composite hit a new all-time high during Wednesday’s session, and closed above 10,000 for the first time on record as Big Tech continues to outperform. – Stevens 

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