Nasdaq Drops 100+ at the Open as American, United Hope for More Federal Aid for Airlines
The stock market has been increasingly volatile, and even as major market benchmarks have recovered from their lows earlier this year, there are still big questions about what comes next for investors. The Nasdaq Composite (NASDAQINDEX: ^IXIC) isn't too far below its recent record highs. On Thursday, though, the Nasdaq was down more than 100 points right out of the gate, and the Nasdaq-100 Index also saw similar declines on a percentage basis.
Today's news that first-time claims for unemployment remained troublingly high didn't do much to inspire confidence that the economic damage caused by the COVID-19 pandemic will get fixed anytime soon. In fact, some companies are insisting that more assistance is necessary in order to prevent even more dire financial consequences. Among them are major airlines, with Nasdaq-listed American Airlines Group (NASDAQ: AAL) and United Airlines Holdings (NASDAQ: UAL) falling significantly to start Thursday's session.
American Airlines led the major carriers lower with a 5% drop in its stock Thursday morning, and United was close behind with a 4% decline. Even as the economy has started to reopen in many key states, the dramatic increase in COVID-19 case counts has brought back nagging doubts about how safe it is to fly to far-flung destinations. Airlines that are already under severe financial pressure are increasingly nervous about what that means for their hopes for a recovery in their businesses.
Source Fool.com
