Stock Market Drop Dampers Hopes Of Quick Recovery

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Stock Market Drop Dampers Hopes Of Quick Recovery
The declines come a day after Federal Reserve Chairman Jerome Powell said there would be a "long road" to economic recovery.
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The Dow Jones Industrial Average fell sharply Thursday as concerns grow over spikes in new COVID-19 cases. In its worst day since March, the Dow lost 1,800 points. The NASDAQ and S&P 500 also finished down.

An Associated Press analysis showed coronavirus cases rising in nearly half the states in the U.S. That could continue to increase as more people return to their regular workplaces and start to spend more time outside this summer.

Experts had said the market's comeback, which started in late March, didn't really reflect the dire state of the economy.

The declines come a day after Federal Reserve Chair Jerome Powell said there would be a "long road" to economic recovery.

Powell suggested the economy is likely to struggle for at least another year or longer, and that we'll likely close 2020 with an unemployment rate above 9%.

The government also said Thursday another 1.5 million Americans filed for unemployment benefits last week.