Stocks sink as nearly 3 million more file unemployment claims

Stocks sunk Thursday after the Labor Department reported another staggering influx of unemployment claims, marking the fourth straight day of losses for Wall Street.

The Dow Jones Industrial Average was down more than 400 points, falling 1.75 percent, while the Nasdaq composite fell 1.6 percent and the S&P 500 sank 1.7 percent.

The stock market has slipped throughout May after rallying through April despite an onslaught of brutal economic data and rising coronavirus cases throughout the U.S.

The Dow and S&P 500 both boasted their largest one-month gains since 1987 last month, each rising more than 11 percent even as the U.S. economy lost at least 20.5 million jobs in April.

However, this week, stocks have closed with losses each day amid growing concern about the extent of the long-term economic damage posed by the pandemic.

Just under 3 million people filed initial unemployment claims in the week ending May 9, according to Labor Department data released Thursday, bringing the total number of newly unemployed Americans since the start of the pandemic to roughly 36.5 million.

The Dow also closed with a loss of roughly 500 points on Wednesday after Federal Reserve Chairman Jerome Powell warned that the economy may need further stimulus spending to avoid a cycle of business failures, job losses and bankruptcies well after the pandemic passes.