(Reuters) – U.S. stocks slumped on Thursday with the S&P 500 and the Dow set for their steepest percentage declines since April 1, as investors fretted over a new wave of coronavirus infections and a gloomy economic forecast from the Federal Reserve.

The three main U.S. stocks indexes were trading at a one-week low as new coronavirus cases rose in the United States after five weeks of declines, according to a Reuters analysis.

All major S&P sectors were deep in the red with financial .SPSY, energy .SPNY and material .SPLRCM sectors, that track economic growth, posting the biggest declines.

Wall Street’s fear gauge, the CBOE volatility index , rose to 32 points, its highest level since May 15.

The easing of lockdowns and a massive stimulus program to help the economy bounce back quickly to pre-pandemic levels have been pivotal in helping the three main indexes recover about 40% from a deep, virus-induced selloff.

“We’re actually going to have a W-shaped recovery,” said Chad Oviatt, director of investment management for Huntington Private Bank in Columbus, Ohio. “Markets are dealing with the fact that we now have an elongated recovery period.”

The S&P 500 .SPX and the Dow Jones .DJI indexes ended lower on Wednesday after Fed Chair Jerome Powell acknowledged it could take years for the millions of people laid off due to COVID-19 to get back to work, even as he reiterated his promise to support the virus-hit economy.

A Labor Department report showed about 1.54 million people applied for state unemployment benefits for the week ended June 6, roughly in line with estimates.

Boeing Co (BA.N) shed 9.1% after its top supplier Spirit AeroSystems Holdings Inc (SPR.N) announced a 21-day layoff for staff doing production and support work for Boeing’s 737 program. Spirit AeroSystems tumbled 12.1%.

At 11:23 a.m. ET, the Dow Jones Industrial Average .DJI was down 992.42 points, or 3.68%, at 25,997.57, the S&P 500 .SPX was down 98.04 points, or 3.07%, at 3,092.10. The Nasdaq Composite .IXIC was down 217.44 points, or 2.17%, at 9,802.91.

Shares of banks .SPXBK, which tend to benefit in a higher rate environment, slipped 6.6%, extending losses after Fed policymakers saw key overnight interest rates remaining near zero through at least 2022.

Shares of airlines and cruise operators were some of the biggest percentage losers on the S&P 500.

The S&P 1500 airlines index .SPCOMAIR tumbled 9.2%, while Norwegian Cruise Line Holdings Ltd (NCLH.N) and Royal Caribbean Cruises Ltd (RCL.N) slumped 13.6% and 8.2%, respectively.

Declining issues outnumbered advancers for a 15.18-to-1 ratio on the NYSE and a 10.29-to-1 ratio on the Nasdaq.

The S&P index recorded four new 52-week highs and no new low, while the Nasdaq recorded 15 new highs and five new lows.