BREAKING: Stocks drop after President Trump calls off stimulus talks
NEW YORK — Stocks dropped suddenly on Wall Street Tuesday afternoon after President Donald Trump ordered a stop to negotiations with Democrats over another round of stimulus for the economy, which has been punched into a recession by shutdowns related to the coronavirus pandemic. The Dow Jones Industrial Average swung instantly from a gain of about 200 points to a loss of about 300 points.
Most stocks across the market were rising, and roughly two in three within the S&P 500 were higher. Companies that would benefit most from a strengthening economy gained ground, including banks, airlines and industrial companies like Caterpillar. Utilities rose 1.4% for the biggest gain among its 11 broad sectors, while energy stocks gained 1.1%.
Story continuesTrading on Wall Street has gotten even shakier recently as investors contend with a long list of uncertainties, from President Donald Trump’s COVID-19 diagnosis to waxing and waning expectations about Congress’ ability to deliver another round of stimulus for the economy. “We continue to fail to understand how it is that any incumbent dare face his or her voters on November 3 without having passed the stimulus package,” said Julian Emanuel, BTIG chief equity and derivatives strategist. “Which is why we continue to think there's a reasonable chance something will get done.”
The Federal Reserve’s chair, Jerome Powell, has repeatedly urged Congress to provide additional aid, saying the Fed can't prop up the economy by itself, even with interest rates at record lows. “We’re on the eve of earnings season and people are reasonably undecided as to whether the correction that started in September has further to run,” BTIG's Emanuel said.
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