· S&P 500, Dow drop as financial sector declines counter tech gains
The S&P 500 and the Dow fell on Wednesday as declines in financials and defensive groups countered gains in tech shares and as data showed U.S. private employers laid off 20 million workers in April, underscoring the economic fallout of the coronavirus outbreak.
The Dow Jones Industrial Average .DJI fell 218.45 points, or 0.91%, to 23,664.64, the S&P 500 .SPX lost 20.02 points, or 0.70%, to 2,848.42 and the Nasdaq Composite .IXIC added 45.27 points, or 0.51%, to 8,854.39.
U.S. private employers laid off a record 20.236 million workers in April as mandatory business closures in response to the novel coronavirus outbreak savaged the economy.
The Labor Department’s more comprehensive report for April is due on Friday.
Investors are now watching efforts by a number of states to spark their economies by easing restrictions put in place to fight the outbreak.
· Stock futures dip as Wall Street awaits latest jobless claims figures
Futures contracts tied to the major U.S. stock indexes slipped in the overnight session Wednesday evening, suggesting Wall Street may be set for modest declines on Thursday after the government’s next jobless claims report.
Dow Jones Industrial Average futures fell 58 points, implying an opening loss of about 95 points. S&P 500 and Nasdaq futures were also slightly lower.
The overnight moves followed a drop in the Dow and S&P 500 during normal trading hours on Wednesday.
· European markets close lower amid sinking oil prices; reopening efforts in focus
European stocks closed lower on Wednesday as investors reacted to falling oil prices, efforts to lift lockdown measures and fresh economic data.
The pan-European Stoxx 600 closed down by around 0.4% provisionally, with oil and gas stocks leading the losses. The sector was down by about 3.5%.
Crude oil prices turned negative on Wednesday, snapping a five-day winning streak as concerns of an oversupplied market outweighed optimism over economies reopening.
Investors are also closely following developments in Europe and the U.S. as both have started to lift lockdown measures and will have to see what impact that has on the coronavirus outbreak.
U.S. President Donald Trump on Tuesday acknowledged that reopening parts of the nation’s economy now, against the advice of many health experts, would inevitably cost some Americans their lives. But he argued that the benefits outweighed the costs.
· Asia Pacific stocks little changed; private survey on China’s services sector ahead
Stocks in Asia Pacific were little changed in Thursday morning trade as investors await the release of a private survey of China’s services activity in April.
In Japan, the Nikkei 225 dipped 0.58% while the Topix index shed 0.64%. South Korea’s Kospi also declined 0.31%.
Meanwhile, shares in Australia were largely flat, with the S&P/ASX 200 hovering around the flatline.
Overall, the MSCI Asia ex-Japan index traded 0.24% lower.
Markets in Singapore, Malaysia and Indonesia are closed on Thursday for holidays.
Reference: CNBC, Reuters
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