declined one basis point to 0.16%, while the 10-yr yield declined ten basis points to 0.65% as investors sought some safety in longer-dated maturities. The U.S. Dollar Index rose 0.8% to 96.76.
Notably, the CBOE Volatility Index spiked 48.0% to 40.79, which reflected increased hedging interest against further equity weakness. The S&P 500 did end the session below its 200-day moving average (3013), which is a key technical level many traders observe.
In corporate news, Regeneron Pharma (REGN 596.16, -10.43, -1.7%) said it started clinical trials for its COVID-19 antibody treatment. GrubHub (GRUB 61.79, +2.74, +4.6%) agreed to be acquired by Just Eat Takeaway (TKAYY 9.30, -0.70, -7.0%) for $75.15/share in an all-stock deal.
Reviewing Thursday's economic data:
Initial jobless claims for the week ending June 6 decreased by 355,000 to a still-high 1.542 million (Briefing.com consensus 1.525 million) while continuing claims for the week ending May 30 decreased by 339,000 to a still stunningly high 20.929 million.
The key takeaway from this report is that, notwithstanding the hiring activity in May, it shows the labor market remains a long, long way from being back.
The Producer Price Index for final demand increased 0.4% m/m in May (Briefing.com consensus +0.1%). The index for final demand, excluding food and energy, declined 0.1% (Briefing.com consensus 0.0%). Those readings left the yr/yr rates at -0.8% and 0.3%, respectively.
The key takeaway from this report is that it shows why the Fed isn't thinking about raising rates anytime soon.
Looking ahead, investors will receive the preliminary University of Michigan Index of Consumer Sentiment for June and Export and Import Prices for May on Friday.
Nasdaq Composite +5.8% YTD
S&P 500 -7.1% YTD
Dow Jones Industrial Average -12.0% YTD
Russell 2000 -18.7% YTD
Market Snapshot
Dow 25128.19 -1861.80 (-6.90%)
Nasdaq 9492.75 -527.62 (-5.27%)
SP 500 3001.97 -188.04 (-5.89%)
10-yr Note +6/32 0.663
NYSE Adv 86 Dec 2859 Vol 1.3 bln
Nasdaq Adv 240 Dec 3130 Vol 5.2 bln
Industry Watch
Strong: None
Weak: Energy, Financials, Industrials, Materials
Moving the Market
-- Market pulls back about 5%, cooling down from overheated condition
-- Value and cyclical stocks lag, especially those in the energy sector amid a sharp pullback in oil prices
-- Decline is ostensibly based on cautious outlook from Fed and reports of increasing rates of coronavirus cases
WTI crude pulls back 8%
11-Jun-20 15:25 ET
Dow -1806.50 at 25183.49, Nasdaq -491.35 at 9529.02, S&P -179.92 at 3010.09
[BRIEFING.COM] The S&P 500 is down 5.7%, and the Russell 2000 is down 6.9%.
One last look at the S&P 500 sectors shows big losses across the board. The energy sector is down the most with a 8.9% decline, while the consumer staples sector is down the least with a 3.5% decline.
WTI crude futures dropped 7.9%, or $3.13, to $36.41/bbl as oil prices pulled back alongside stocks.
