Stock markets opened significant losses Thursday morning on the news that the United States experienced the worst quarterly economic contraction on record earlier this year and an increase in weekly jobless claims.
The Dow Jones Industrial Average fell 300 points, or 1.1 percent, and the S&P 500 fell 31 points, or 1 percent.
The U.S. gross domestic product contracted by an unprecedented 32.9 percent in the second quarter as the country closed due to the COVID-19 pandemic. Initial jobless claims of 1.4 million rose for the second week in a row, as new outbreaks across the country led some states to reimpose closings.
The market declines came despite the fact that economists were largely expecting poor data.
After an initial slump in March, stocks have regained much of their lost ground as traders look beyond the crisis.
Until now, they have largely ignored the most recent outbreaks, which have led to daily case-count and hospitalization records, as well as an increase in deaths.
More than 150,000 Americans have died from the coronavirus.
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