Dow dips below 30,000 milestone on rising jobless claims

The Dow Jones Industrial Average on Wednesday fell below the landmark 30,000 level it breached for the first time a day earlier, following disappointing jobless claims data.

The Dow closed down 174 points, or 0.6 percent, at 29,940, while the S&P 500 dipped 5.8 points, or 0.2 percent, from its own record closing.

The dip comes as weekly jobless claims rose for the second week in a row, hitting a seasonally adjusted 778,000.

The claims were both higher than Wall Street expectations, and a move in the wrong direction for an economy seeking to recover from the COVID-19 pandemic that has plagued it since March.

The rising jobless claims coincide with uncontrolled spikes in new cases and deaths from the virus. Tuesday saw nearly 2,100 deaths from the disease, the highest level since May.

The increased case count has pushed down consumer confidence and led to reimposed restrictions that have hampered business.

Updated at 4:52 p.m.