Wall Street drops as investors face stimulus impasse

U.S. stocks dropped on Thursday as a rise in weekly jobless claims compounded worries about a stalling economic recovery and fading hopes for more fiscal aid before the election.

The Dow Jones Industrial Average was down 0.1% at 28,484.1 points, while the S&P 500 lost 0.32% to 3,477.54. The Nasdaq Composite dropped 0.79% to 11,675.81.

The number of Americans filing new claims for jobless benefits rose to a two-month high last week, stoking fears the COVID-19 pandemic was inflicting lasting damage to the labor market.

A separate report showed manufacturing activity in New York State fell more than expected in October.

“Going into the fall it will be difficult for unemployment to make a lot of positive headway because of the lack of stimulus,” said Christopher C. Grisanti, chief equity strategist, MAI Capital Management in Cleveland.