Dow plunges 1,600 points after Fed decision, jobless claims

4:05 p.m. ET: Dow drops 1,861 points in fourth biggest point loss ever

Here were the main moves in markets as of 4:05 p.m. ET:

  • S&P 500 (^GSPC): -188.04 (-5.89%) to 3,002.10
  • Dow (^DJI): -1,861.82 (-6.90%) to 25,128.17
  • Nasdaq (^IXIC): -527.62 (-5.27%) to 9,492.73
  • Crude (CL=F): -$3.42 (-8.64%) to $36.18 a barrel
  • Gold (GC=F): +$13.40 (+0.78%) to $1,734.10 per ounce
  • 10-year Treasury (^TNX): -9.5 bps to yield 0.6530%

  • Stocks slid, with the S&P 500 and Dow pointing to a third straight session of losses, following the 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.

The Dow dropped more than 6%, or greater than 1,700 points, at session lows and paced toward its worst day since mid-March. The VIX Volatility Index (^VIX), or so-called fear gauge, spiked more than 38%.

  • “What we’re seeing here is the market taking a breather,” Alex Piré, Seeyond Head of Client Portfolio Management, told Yahoo Finance on Thursday.
  • He cited relatively bearish remarks from Fed Chairman Jerome Powell as partly responsible for telling investors “what the market wouldn’t like to hear.
  • But the economic news that we’re getting has stayed fairly consistent.”

Additionally, market participants 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.