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© Reuters. A man wearing a protective mask walks along 14 Wall Street, as the global outbreak of coronavirus disease (COVID-19) continues, in New York’s financial district.
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By Chuck Mikolajczak
NEW YORK (Reuters) – US stocks fell in choppy trade on Tuesday after hitting record highs as investors worried about the path of economic reopening and whether the Senate would authorize additional controls on pandemic aid.
Modest gains in early trading pushed stocks to an intraday record, but the advance evaporated after US Senate Majority Leader Mitch McConnell blocked immediate consideration of the measure calling for an increase in stimulus payments of $ 600 to $ 2,000. Final approval of the proposal would require 60 votes and the backing of a dozen Republicans.
McConnell said the chamber would address the pay hike this week along with limits on big tech companies and electoral integrity.
McConnell’s comment comes a day after the Democrat-led House of Representatives passed the measure to increase direct payments.
“Majority Leader McConnell’s decision not to support the $ 2,000 outlays caused the equity markets to turn from green to red around noon,” said Joseph Sroka, chief investment officer at NovaPoint in Atlanta.
“The plan that was originally signed is integrated. The question of whether the most important individual checks are approved is up for debate.”
It fell 68.3 points, or 0.22%, to 30,335.67, lost 8.32 points, or 0.22%, to 3,727.04 and fell 49.20 points, or 0.38%, to 12,850.22 .
Volumes are expected to be light in the holiday shortened week, which could lead to fuel volatility. The S&P 500 is up 15.4% so far this year, with only two trading days left in 2020.
Wall Street’s top three indices opened to new highs for the second consecutive session after Trump signed a $ 2.3 trillion tax bill that restored unemployment benefits and prevented a federal government shutdown.
More than 2 million Americans have been vaccinated, helping investors look beyond an increase in infections that surpassed 19 million, with California one of the top virus hot spots in the US, They are likely to issue strict stay-at-home orders.
But a sharp drop in small-cap stocks could signal concern about rising infections causing a slower-than-expected reopening, according to Stephen Massocca, senior vice president at Wedbush Securities in San Francisco. The small-cap index was down 1.85% on the day, its biggest one-day percentage drop in a month.
Unprecedented fiscal and monetary stimulus measures, coupled with positive advances in vaccines, have helped the S&P 500 recover from a crisis triggered by the virus in March.
The benchmark index is up more than 10% during the quarter as investors have flocked to the economically sensitive stocks of so-called “stay at home” games in hopes of a recovery.
Intel Corp. (NASDAQ 🙂 jumped 4.93% after Reuters reported that activist hedge fund Third Point (NYSE 🙂 LLC is pressuring the chipmaker to explore strategic options, including whether to remain an embedded device maker. . [nL1N2J9139]
After climbing as much as 2.6%, Boeing (NYSE 🙂 shares recovered previous gains to close 0.07%, as its 737 MAX aircraft resumed passenger flights in the United States for the first time after that a 20-month security ban was lifted last month. .
Snapchat owner Snap Inc (NYSE 🙂 was up 6.15% after Goldman Sachs (NYSE 🙂 raised its share price target on optimistic earnings growth prospects.
The volume of US exchanges was 9.46 billion shares, compared to the average of 11.14 billion for the full session during the last 20 business days.
Issues declining outnumbered those advancing on the NYSE by 1.70 to 1; on the Nasdaq, a 2.57-to-1 ratio favored the declines.
The S&P 500 posted 21 new 52-week highs and no new lows; the Nasdaq Composite recorded 83 new highs and 27 new lows.
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