US Market tumbles as Trump halts stimulus talks

The US stock market finished volatile session deeply into negative territory on Tuesday, 06 October 2020, on dampening stimulus hopes after President Donald Trump tweet that he would halt talks on coronavirus relief package with Democrats until after the Nov. 3 elections.

At closing bell, the Dow Jones Industrial Average index declined 375.88 points, or 1.34%, to 27,772.76. The S&P 500 index dropped 47.68 points, or 1.4%, to 3,360.95. The tech-heavy Nasdaq Composite Index fell 177.88 points, or 1.57%, to 11,154.60.

The selloff in the Wall Street triggered after the U.S. President Donald Trump's tweet that he would end negotiations on a new fiscal stimulus package. Trump said he has instructed his administration's negotiators to stop stimulus discussions with Democrats until after the Nov.3 presidential election.

Trump's announcement in a tweet came on the heels of U.S. Federal Reserve Chair Jerome Powell's warning of dire economic repercussions if Congress failed to pass additional fiscal stimulus. Federal Reserve Chairman Jerome Powell said during his speech at the National Association for Business Economics that the U.S. economic recovery U.S. economic recovery remained far from complete and the economy needs more fiscal support.

Crude prices extended gains on Tuesday, boosted by supply disruptions from approaching storms in the Gulf of Mexico and an ongoing oil worker strike in Norway. U.S. crude futures settled at $40.67 per barrel, a gain of 3.7%, while Brent gained 3.29% on the day to settle $42.65 per barrel.

Among Indian ADR, INFOSYS fell 1.14% to $13.89, Wipro fell 2.86% to $4.76, Tata Motors added 5.43% to $9.70, HDFC Bank rose 1.47% to $53.29, and Dr Reddys Labs declined 1.89% to $69.13. Vedanta fell 1.21% to $7.34, ICICI Bank was down 0.57% to $10.39, WNS Holdings added 0.59% to $65, and Azure Power Global rose 0.25% to $32.10.

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