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Stock market news live updates: Dow drops 800+ points after Fed decision, jobless claims

Federal Reserve’s monetary policy decision, in which policymakers highlighted the ongoing economic concerns spurred by the coronavirus pandemic and measures taken to contain it.

eyed a rise in new coronavirus cases in key states including Arizona, Florida, North Carolina and Texas. Meanwhile, the Labor Department’s weekly report showed another 1.542 million individuals filed new unemployment insurance claims for the week ended June 6, coming down slightly from the prior week’s 1.897 million.

Shares of companies that have been among the most set to benefit from easing social distancing measures pointed to another session of steep declines. Carriers American Airlines, United Airlines and Delta dropped in early trading Thursday, pointing to a third straight day of losses. Cruise companies Carnival, Royal Caribbean and Norwegian Cruise Line Holdings, along with lodging firms Wynn and Hilton, also tracked toward a third consecutive down day.

The Federal Open Market Committee’s (FOMC) Summary of Economic Projections indicated the Fed expects a steep 6.5% contraction in real GDP in 2020, with an unemployment rate at 9.3%. However, policymakers expect real GDP to rebound by 5.0% in 2021, with the unemployment rate dropping to 6.5%.

In its monetary policy decision, the Fed projected interest rates would remain near zero through 2022 and telegraphed that its pace of asset purchases would remain at minimum at the current rate.

did suggest the FOMC would continue discussing the mechanism going forward.

“Even though today’s FOMC meeting was somewhat of a placeholder until more meaningful choices are made in the next few meetings, the outcome was dovish nonetheless,” JPMorgan economist Michael Feroli said in a note. “The Fed kept interest rates steady and the accompanying interest rate forecast ‘dots’ indicate that rates are likely to remain pinned near zero for at least the next two-and-a-half years.

“Moreover, there was unusual unanimity in this expectation as only two participants expect any rate hikes by that time,” he added. “While the dots are individual forecasts, and not a Committee statement, the unusual lack of dispersion in those dots means it should be easier for the Committee to agree to more forceful forward guidance at upcoming meetings.”

AAPL), Amazon (AMZN) and Microsoft (MSFT) each posted record closing highs, and Tesla (TSLA) closed at a record of more than $1,000 per share. Information technology was the only S&P 500 sector to close in positive territory Wednesday.

8:30 a.m. ET: New jobless claims totaled 1.54 million last week

Weekly initial unemployment claims totaled 1.542 million for the week ended June 6, the Labor Department said in its weekly report. This was just slightly below expectations for 1.55 million, according to Bloomberg consensus data.

The prior week’s new unemployment claims were revised up slightly to 1.897 million, from the 1.877 million previously reported.

Continuing unemployment claims fell less than expected for the week ended May 30, ticking down to 20.929 million versus the 20 million expected. The prior week’s continuing claims totaled 21.268 million.

9:38 a.m. ET: Stocks slide, Dow sheds more than 750 points

Here were the main moves in markets as of 9:39 a.m. ET:

  • S&P 500 (^GSPC): -82.35 points (-2.58%) to 3,107.79

  • Dow (^DJI): -797.16 points (-2.95%) to 26,192.83

  • Nasdaq (^IXIC): -238.04 points (+2.38%) to 9,784.07

  • Crude (CL=F): -$2.88 (-7.27%) to $36.72 a barrel

  • Gold (GC=F): +$25.50 (+1.48%) to $1,746.20 per ounce

  • 10-year Treasury (^TNX): -7.9 bps to yield 0.669%

6:05 p.m. ET Wednesday: Stock futures open slightly higher

Here were the main moves at the start of the overnight session for U.S. equity futures, as of 6:05 p.m. ET:

  • S&P 500 futures (ES=F): 3,186.75, up 0.75 points or 0.02%

  • Dow futures (YM=F): 26,972.00, up 11 points, or 0.04%

  • Nasdaq futures (NQ=F): 10,099.75, up 12.5 points, or 0.12%

NEW YORK, NEW YORK – MARCH 20: Traders, some in medical masks, work on the floor of the New York Stock Exchange (NYSE) on March 20, 2020 in New York City. Trading on the floor will temporarily become fully electronic starting on Monday to protect employees from spreading the coronavirus. The Dow fell over 500 points on Friday as investors continue to show concerns over COVID-19. (Photo by Spencer Platt/Getty Images)

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