NEW YORK (Reuters) – U.S. stocks rose lower in awkward trading on Tuesday after reaching a record high as investors worried about the path of economic reopening and whether the Senate would grant additional pandemic relief controls.
Moderate gains in early trading brought shares to an intraday record, but the advance evaporated after U.S. Senate Majority Leader Mitch McConnell blocked the immediate consideration of the measure to increase stimulus payments from $ 600 to $ 2,000. increase. The final approval of the proposal would require 60 votes and the support of a dozen Republicans.
McConnell said the chamber will address the increased payments this week, along with restrictions on major technology companies and electoral integrity.
McConnell’s remark comes a day after the Democratic House of Representatives approved the move to increase direct payments.
“The move by majority leader McConnell not to endorse the $ 2,000 payouts changed the stock market from green to red around noon,” said Joseph Sroka, chief investment officer at NovaPoint in Atlanta.
‘The plan that was originally signed was baked in. The question of whether the larger individual checks will be passed can be discussed. ‘
The Dow Jones Industrial Average fell 68.3 points, or 0.22%, to 30,335.67, the S&P 500 lost 8.32 points, or 0.22%, to 3,727.04 and the Nasdaq Composite lost 49. , 20 points, or 0.38%, to 12,850.22.
Volumes are expected to be shortened during the week, which could increase volatility. The S&P 500 has risen 15.4% so far this year, with just two trading days left in 2020.
Wall Street’s three main indices opened for a second session at a new high after Trump signed a $ 2.3 billion fiscal bill that restored unemployment benefits and averted a federal government shutdown.
More than 2 million Americans have been vaccinated, helping investors get past the 19 million increase in infections, with California, a major U.S. virus spot, likely to expand strict home orders.
According to Stephen Massocca, senior vice president at Wedbush Securities in San Francisco, a sharp drop in small-cap stocks could lead to a slower-than-expected increase in infections. The Russell 2000 Childhood Index fell 1.85% on the day, its biggest one-day drop in a month.
Unprecedented monetary and fiscal stimulus measures, coupled with positive vaccine development, helped the S&P 500 bounce back from a virus crash in March.
The benchmark index rose more than 10% during the quarter as investors flocked to economically sensitive stocks from the so-called ‘stay at home’ plays with the hope of recovery.
Intel Corp. jumped 4.93% after Reuters reported that activist hedge fund Third Point LLC was urging the chipmaker to explore strategic options, including whether it should remain an integrated device maker. [nL1N2J9139]
After rising 2.6%, Boeing shares earlier returned gains to close 0.07% as its 737 MAX aircraft resumed passenger flights for the first time in the United States after a safety ban of 20 months was lifted last month.
Snap Inc owner Snap Inc climbed 6.15% after Goldman Sachs raised its price target on the stock with optimal growth prospects.
The US stock market was 9.46 billion shares compared to the average of 11.14 billion for the full session over the past 20 trading days.
Outgoing issues outperformed the NYSE by 1.70 to 1; on Nasdaq, a 2.57-to-1 ratio is the case of declines.
The S&P 500 reached 21 new 52-week highs and no new lows; the Nasdaq Composite recorded 83 new highs and 27 new lows.
Additional reporting by Stephen Culp; Edited by David Gregorio