Wall Street ended solidly after Trump refused to agree to crisis package negotiations

US President Donald Trump wrote on Twitter Tuesday night that he had instructed his party colleagues to halt negotiations on a new economic crisis package in Congress until the November 3 presidential election.

Trump further writes that the Democrats’ proposal for a $ 2.4 billion crisis package is too much, and that the $ 1.6 billion Republican proposal should stick.

Before Trump’s announcement, it was a quiet day on the New York Stock Exchange, and the indices were largely unchanged for much of the day, gently oscillating between green and red.

However, just after Trump’s rant on Twitter, the major Wall Street indices plunged an hour before closing time.

Here’s what it looks like at closing time at 10 p.m. Norwegian time on Tuesday night:

• Industrial-heavy Dow Jones fell 1.34 percent
• The broad S&P fell 1.40 percent
• The Nasdaq Tech Index fell 1.57 percent

Tek shares fell sharply on Tuesday: Apple fell more than three percent, while Facebook, Microsoft and Netflix fell more than two percent.

The price of North Sea oil (burned) immediately fell 1.5 percent to just over $ 42 a barrel after Trump’s announcement.

Fed Chief: US Economy Needs New Crisis Package

The first crisis package reached $ 2.2 trillion in March, to help Americans affected by the corona pandemic. It included, among other things, loans to small businesses and a weekly amount of $ 600 to the unemployed.

At the end of September, Nancy Pelosi, leader of the House of Representatives, presented the Democratic proposal for a new crisis package. The Democrats’ proposals include support for schools, small businesses, and restaurants, among other things.

Pelosi and Finance Minister Steven Mnuchin discussed the crisis package on Monday and are scheduled to continue the dialogue on Tuesday.

Jerome Powell, director of the US Federal Reserve (Fed), said Tuesday that the US economy needs another crisis package and that it will lead to a faster recovery. Investors have hopefully been waiting for a new crisis package this fall, but if the president gets what he wants, it may not look like it will come right away.

The article continues below the announcement.

High trade deficit

It was also announced on Tuesday that the US balance of trade in goods and services posted a deficit of $ 67.1 billion in August, from a revised deficit of $ 63.4 billion in July. This is the highest level in fourteen years, the Ap news agency reported.

A deficit of $ 66.1 billion was expected up front, according to Direkt Makro.(Terms)Copyright Dagens Næringsliv AS and / or our suppliers. We would like you to share our cases via a link, which leads directly to our pages. Copying or other use of all or part of the content may only be done with written permission or as permitted by law. For more terms, see here.