Stocks on Wall Street closed lower on dampening hopes that an agreement for a U.S. fiscal stimulus would be approved before the presidential election in November
Downbeat comments from Treasury Secretary Steven Mnuchin that a deal would not likely be made before the vote added to fragile sentiment following a mixed bag of quarterly earnings reports from major Wall Street lenders.
“Optimism took hold like a rocket last week and now it’s coming back down to earth a little bit,” said Mike Zigmont, head of trading and research at Harvest Volatility Management in New York. “I think a stimulus as a large macro event is already baked into stock prices. It’s just a question of when the details emerge and when the stimulus goes into effect.”
FILE PHOTO: The front facade of the New York Stock Exchange is seen in New York City, New York, U.S., June 26, 2020. REUTERS/Brendan McDermidBank of America fell 5.3% and Wells Fargo tumbled 6% after a disappointing quarterly results.Third-quarter earnings season is getting underway, with signs of overall improvement in expectations of how badly U.S. companies have been hurt by the pandemic.
UnitedHealth Group Inc dropped 2.9%, despite raising its profit forecast, as the U.S. insurer said it was difficult to predict the fallout of the pandemic on earnings.
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