By the end of April, the country’s unemployment rate may exceed 10%
Last week, the number of Americans applying for unemployment benefits doubled for the first time, from 3.28 million to 6.64 million. Despite this jump, US stock indices reacted to the increase during trading on Thursday 2 April.
Therefore, as of 11:00 am in the United States, the Dow Jones Industrial Index rose 1.6%, up more than 300 points, the S&P 500 rose 1.8%, and the Nasdaq Composite – 1.3%. At the same time, on Tuesday, the Dow Jones and the S&P 500 closed with the worst indicators for the first quarter. The Dow Jones index fell more than 23% after the end of the quarter on March 31 – the worst result since 1987, while the S&P 500 lost more than 20% – the first time since 2008. In March, both indices fell by only 10% amid a drop in sales due to coronavirus.
Earlier, experts had predicted an increase in unemployment claims from 217 thousand to 3.5 million. Since the inception of data accounting in 1967, according to Trading Economics, the figure of 3 million is the maximum. In the last two weeks, the number of applications exceeded the maximum recession rates of 2007–2009.
According to the head of US stock fund Lazard Asset Management, the unemployment rate in the country could exceed 10% by the beginning of next month.
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