With No Stimulus Likely, Dow Drops 410 Points




(Newser)

Stocks gave up some of their recent gains Monday as Wall Street’s hopes that Washington will come through with badly needed aid for the economy before Election Day faded. The S&P 500 dropped 1.6%, its worst day in more than three weeks. The benchmark index had been up 0.5% in the early going following a report that China’s economy grew at a 5% annual rate in the last quarter. The market’s slide was broad, though technology, health care, and communication stocks bore the brunt of the selling. The S&P 500 fell 56.89 points to 3,426.92. The Dow Jones Industrial Average dropped 410.89 points, or 1.4%, to 28,195.42. The Nasdaq composite extended its losing streak to a fifth day, losing 192.67 points, or 1.7%, to 11,478.88.

Hopes for agreeing on a new stimulus package before the Nov. 3 election are dimming. Meanwhile, the coronavirus remains a concern and the election will likely make for a volatile few weeks. “We’re in a period here in the the next couple of weeks where the market goes sideways through the election,” Terry Sandven, chief equity strategist at US Bank Wealth Management, tells the AP. Senate Majority Leader Mitch McConnell is expected to bring his version of a stimulus bill to the floor of the Senate for a vote on Wednesday. However that bill is likely to get zero traction with the Democrat-controlled House of Representatives. So far, McConnell, House Speaker Nancy Pelosi, and President Trump have not been on the same page.

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