Dow ends 205 points lower as tensions surrounding the coronavirus aid package increase prior to Fed policy update
US stocks ended lower on Tuesday as investors responded in part to a lack of progress toward a new coronavirus relief package and investors were waiting for a Federal Reserve policy update at the end of their meeting on Wednesday. The Dow Jones Industrial Average DJIA,
ended 205 points, or 0.8%, lower at about 26,379, the S&P 500 index SPX,
closed 0.7% lower at 3,218, while the Nasdaq Composite Index COMP,
declined 1.3% to about 10,403 as large capitalization tech stocks took a chin, some of which are expected to report results in the coming days. Negotiations between Democrats and Republicans, aimed at further encouragement to help individuals economically damaged by the pandemic, are becoming a point of contention. Democratic House speaker Nancy Pelosi said on Monday that GOP leaders who brought up a $ 1 billion aid proposal to the table are “not really ready to negotiate seriously.” Democrats are eager to keep the existing weekly allowance of $ 600, while the Republican plan would reduce it to a $ 200 add-on until September. The additional unemployment benefits will expire at the end of the month. Meanwhile, the Federal Reserve will conclude a two-day policy meeting on Wednesday that is unlikely to lead to much action, but President Jerome Powell is expected to underline the willingness to take further measures to support the economy and maintain easy financial conditions. In company news, Pfizer Inc. shares PFE,
rose 3.9% after beating earnings and sales expectations and raising the full-year outlook, while shares of McDonald’s Corp. MCD,
declined 2.5% after the fast food chain reported earnings that fell short of Wall Street forecasts.