Wall Street Close: Bears take over as stimulus clock ticks down
|- Dow Jones Industrial Average fell 398.68 points or 1.39%.
- The S&P 500 lost 56.44 points, or 1.62%.
- Nasdaq Composite dropped 190.49 points, or 1.63%.
Unofficially, the Dow Jones Industrial Average fell 398.68 points or 1.39%, to 28,207.63, the S&P 500 lost 56.44 points, or 1.62%, to 3,427.37 and the Nasdaq Composite dropped 190.49 points, or 1.63%, to 11,481.07.
The losses accrued later in the day as news spread that there had been no headway on stimulus talks. Wall Street's fear gauge VIX was rising for a sixth straight session also as election campaigns kicked into high gear.
The Tuesday deadline for lawmakers to agree on a deal is fast approaching but it now appears that a relief package is impossible ahead of the November 3rd elections.
Last week, the White House proposed a $1.8 trillion stimulus package that Pelosi rejected because it fell short of her demand for $2.2 trillion in aid.
House Speaker Nancy Pelosi said Sunday that in order to push through an agreement before the election, it would have to be settled on by Tuesday.
Rising coronavirus cases sends investors to the sidelines
At the same time, rising coronavirus cases in parts of the United States is troubling investors who are now starting to take to the sidelines as states prepare to go back into lockdown.
Wisconsin, which has battled one of the worst coronavirus surges in the United States has had a judge on Monday reinstated restrictions. Then, in New Mexico, the governor there has warned that the state's healthcare resources might not be sufficient due to the surge in new cases.
According to a Reuters analysis, the number of COVID-19 cases in the United States last week rose 13% to more than 393,000, approaching levels last seen during a summer peak.
S&P 500 levels
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