Dow plummets 400 points as Trump halts stimulus talks until after election
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- US equities plummeted on Tuesday after President Trump abruptly halted stimulus talks until after the November 3 election.
- “I have instructed my representatives to stop negotiating until after the election when, immediately after I win, we will pass a major Stimulus Bill,” Trump tweeted Tuesday afternoon.
- Major stock indexes gained in recent sessions on renewed hope for near-term fiscal relief. Trump’s action leaves the economy to trudge onward without support many economists have deemed essential.
- With election results likely to trickle in over a matter of days, the holdout could last well into next month.
- Watch major indexes update live here.
US stocks tanked on Tuesday afternoon, erasing earlier gains, after President Donald Trump said stimulus negotiations in Congress will be frozen until after the presidential election.
The Dow Jones industrial average plummeted as much as 1.5% – or 416 points – immediately after the announcement. The benchmark index had risen 0.7% at intraday highs prior to the tweet.
Major stock indexes had climbed in recent sessions amid investor optimism around a near-term relief bill. The abrupt pause leaves the US economy to recover without fiscal support many have deemed essential for fueling a timely bounce-back.
“I have instructed my representatives to stop negotiating until after the election when, immediately after I win, we will pass a major Stimulus Bill that focuses on hardworking Americans and Small Business,” the president said in a tweet.
Here’s where US indexes stood at 3:25 p.m. ET on Tuesday:
- S&P 500: 3,367.88, down 1.2%
- Dow Jones industrial average: 27,820.96, down 1.2% (328 points)
- Nasdaq composite: 11,177.88, down 1.4%
Read more: These 30 global stocks are positioned to stay on top in the 4th quarter as the contrast between a recovering economy and rising COVID cases keeps markets volatile, RBC says
With many expecting election results to trickle in over a matter of days, the holdout could last well into next month.
The abrupt halt to relief talks come after House Democrats passed their own $2.2 trillion measure on Thursday. Though the bill garnered no Republican support, House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin have held multiple conversations in recent days aiming to reach a compromise.
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