A big jobless claims report ahead at 8:30 am ET would likely determine the direction of the market on Thursday.
Dow futures were up 350 points. The S&P 500 and Nasdaq Composite were also set to open higher.
Economists expect another 4 million to 5 million workers filed for jobless claims last week as
But WTI crude jumped 10% to back above $22 a barrel on Thursday after President Donald Trump said he expects Saudi Arabia and Russia to come to an agreement about their price war that has added to the pain for the crude market, already getting hit by an unprecedented demand slowdown from the
Traders have been closely watching oil because of its influence over other financial markets. The oil losses have been so big, that they have caused investors to sell other assets to cover their losses in crude. Plus, the 63% decline in oil this year is hurting the U.S.
Energy stocks were among the biggest gainers in premarket trading. Shares of Exxon Mobil and Chevron each gained more than 6%. Occidental Petroleum and Apache jumped more than 10%.
Stocks posted steep losses on Wednesday to begin the second quarter, as the
The Dow Jones Industrial Average closed 4.4%, or 973.65 points, lower at 20,943.51. The S&P 500 and Nasdaq Composite also closed 4.4% lower, at 2,470.50 and 7,360.58, respectively. Stock losses accelerated minutes before the close, although the major averages did manage to end the session off the lows of the day. The Dow briefly fell more than 1,100 points.
The utilities, real estate, and financial sectors dragged the S&P 500 lower, while Boeing and American Express were the Dow’s biggest
New York Gov. Andrew Cuomo said Wednesday he is closing all New York City playgrounds and said that the state’s model projects a high death rate through July. He also said cases in New York state now total more than 83,000.
Cuomo’s comments came after President Donald Trump said Tuesday evening that the U.S.
“While April will be an extremely volatile month in terms of both the news flow and stock market reactions, I do think many are anticipating this,” Bleakley Advisory Group chief investment officer Peter Boockvar said Wednesday. “What is not priced in I believe because it’s obviously hugely unknown is what is on the other end come May. How contained will this virus spread be by then? To what extent will things begin to reopen, if at all?”
On Tuesday, the Dow and S&P 500 closed out their worst first-quarter performances of all time. The Dow fell more than 23% in the first quarter; that
“While we have not seen announcements yet, dividend cuts could be on the horizon for U.S.
“With a heavy hit to revenues, businesses may opt to prioritize employees and lower borrowing loads over paying dividends. This could present a risk for equities. Announcements of temporary (1-2 quarters) of dividend cuts could be priced in, but longer cuts would likely contribute to negative sentiment,” she added.
Amid the market rout, Congress passed a massive $2 trillion stimulus package in an effort to halt the economic slowdown caused by the pandemic. Already, there are calls for even more stimulus.
Boston Federal Reserve President Eric Rosengren said Wednesday that Congress likely will have to deliver more stimulus to help those at the lower end of the economic spectrum and to boost small business.
Unemployment is likely to “rise pretty dramatically over the next couple of months” and the economic damage won’t abate until the
—CNBC’s Jeff Cox and Nate Rattner contributed reporting.