Stocks slide after new claims show high unemployment

Stocks slide after new claims show high unemployment
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Stock markets opened down Thursday following a worse-than-expected unemployment report.

The Dow Jones Industrial Average opened down 200 points, or 0.8 percent, and the S&P 500 was down 15 points, or 0.5 percent.

Initial unemployment claims for the second week of June showed more than 1.5 million new claims, plus more than 750,000 applicants for Pandemic Unemployment Assistance, which makes benefits available to groups that normally cannot receive unemployment insurance.

Continuing claims, a better indicator of the overall labor picture, remained at 20.5 million, down just 62,000 from the previous week.

Surges of coronavirus cases and hospitalizations in some places that have moved to quickly reopen their economies, such as Texas and Florida, are raising concerns about whether the economy will strongly rebound from earlier lockdowns.