Stocks dipped after a new report showed new jobless claims resurged to more than 850,000 last week, as a wave of coronavirus cases and more virus-related restrictions unwound some of the progress in the labor market’s recovery.
The S&P 500 and Dow each fell after holding flat to slightly positive during much of the overnight session. The Nasdaq underperformed again as tech stocks came under renewed pressure. Shares of Facebook (FB) added to losses in early trading after the U.S. Federal Trade Commission and 48 attorneys general filed an antitrust lawsuit against the social media giant on Wednesday.
Concerning new economic data added to traders’ jitters. New jobless claims came in at 853,000 last week, for a print well above the 725,000 expected. Continuing claims also unexpectedly rose, underscoring the increasing economic toll from the latest jump in coronavirus cases as lawmakers stall in passing a new round of relief measures.
Lawmakers still appear to be far from convening on the scope of another round of virus relief aid. House Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer rejected Treasury Secretary Steven Mnuchin’s $916 billion plan he offered earlier this week, as it includes fewer funds for unemployment benefits. And Senate Majority Leader Mitch McConnell has balked liability protections and state and local government aid included in a bipartisan group of lawmaker’s $916 billion outline.
The coronavirus relief package was expected to be attached to the government’s broader spending bill for the fiscal year, which lawmakers also have still not passed. In an effort to buy more time to reach an agreement, the House of Representatives passed a one-week government funding extension to avoid a government shutdown. The Senate is also expected to pass the stopgap funding bill.
Despite the pressure to the broader market, one pocket of the market has still performed exceptionally well: newly public companies. DoorDash (DASH) on Wednesday debuted with a stock pop of 78% above its initial public offering price of $102 per share. The unprofitable food delivery company’s market capitalization ballooned to about $68 billion, or multiples above the $16 billion valuation it last fetched in private markets. Software company C3.ai (AI), meanwhile, saw shares more than double in their first day of trading.
Airbnb (ABNB) priced its IPO Wednesday evening at $68 per share, or above its targeted range, and shares are set to begin trading Thursday on the Nasdaq. The company raised $3.5 billion in the IPO, and the pricing gave the company a fully diluted valuation of about $47 billion.
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9:30 a.m. ET: Stocks open lower
Here were the main moves in markets, as of 9:30 a.m. ET:
Read More: Stocks fall after jobless claims jump, in sign of virus-related economic