Stock futures plummet on global economic concerns

Stock futures plummeted Thursday morning amid concerns on how the global economy will be impacted by a possible resurgence of COVID-19 cases as the highly transmissible delta variant rapidly spreads.

Dow futures saw a 465-point decline, or 1.4 percent, while S&P 500 futures fell roughly 1.35 percent and Nasdaq 100 futures dropped 1.5 percent, according to CNBC.

The losses reported ahead of Thursday’s market opening were seen especially among companies in industries that were hit hard by coronavirus-era restrictions on the global economy.

For example, CNBC reported shares of Carnival and Royal Caribbean each dropping by more than 2 percent, with American Airlines and Delta Air Lines each experiencing a 2 percent drop. 

The losses came the same day Japan announced a state of emergency for Tokyo with just two weeks until the launch of the Olympic Games, with a spectator ban likely amid rising COVID-19 infections in the capital city. 

Japanese Prime Minister Yoshihide Suga said Thursday, “Taking into consideration the impact of the delta strain, and in order to prevent the resurgence of infections from spreading across the country, we need to step up virus prevention measures.” 

According to the World Health Organization, the delta variant first identified in India has now been recorded in at least 96 countries around the globe, and the Centers for Disease Control and Prevention on Wednesday said that the strain now accounts for the majority of U.S. COVID-19 cases. 

The Labor Department’s newest report on jobless claims on Thursday also came in higher than expected at 373,000 total for the week ending July 3. Dow Jones had estimated claims totaling 350,000. 

The newest report revised last week’s jobless claims from 364,000 to 371,000.