Stocks fell sharply on Thursday as coronavirus cases increased in some states that are reopening up from lockdowns. Shares that have surged recently on hopes for a smooth reopening of the economy led the declines.
The Dow Jones Industrials plummeted 740 points, or 2.7%, to 26,221.
The S&P 500 dropped 70 points, or 2.2%, to 3,116. Thursday's losses put the Dow on pace for its first three-day losing streak in a month. The S&P 500 was also headed for its longest losing streak since early March.
The NASDAQ sagged 162 points, or 1.6%, to 10,020.35.
Shares of United Airlines, Delta, American and Southwest all dropped more than 10%. Carnival Corp. and Norwegian Cruise Line shares fell more than 14%. Gap and Kohl's shares also fell more than 9% each.
Concerns about a second wave of coronavirus cases have risen as U.S. states push deeper into reopening. Texas has reported three consecutive days of record-breaking COVID-19 hospitalizations. AP said nine California counties are reporting a spike in new coronavirus cases or hospitalizations of confirmed cases.
To be sure, one official said states such as Arizona and Texas "never really got rid of the first wave," and added: "It's not a second wave."
Weekly jobless claims rose by 1.5 million last week, slightly less than the Dow Jones estimate of 1.6%. Continuing claims, which reflect the number of people receiving unemployment benefits for at least two weeks, declined by 339,000 to 20.9 million.
Prices for the 10-Year Treasury gained sharply, lowering yields to 0.67% from Wednesday's 0.74%. Treasury prices and yields move in opposite directions.
Oil prices sank $2.78 to $36.82 U.S. a barrel.
Gold prices wilted $25.60 to $1,746.30 U.S. an ounce.