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Wall Street ends lower after Trump calls off coronavirus relief talks

Stocks were higher before the remarks, but reversed course after Trump made the comments on Twitter

Topics
Donald Trump | Coronavirus | United States

Reuters 

Wall street, market
Stocks fell to a session low shortly after the tweet, taking the S&P 500 down more than 2% from its session high

US stocks fell sharply on Tuesday to close lower after President said he was calling off negotiations with Democratic lawmakers on relief legislation until after the election.

Stocks were higher before the remarks, but reversed course after Trump made the comments on Twitter.

Stocks fell to a session low shortly after the tweet, taking the down more than 2% from its session high.

"Much of the rally we've seen in the last week in particular was based on hopes for an additional stimulus package," said Robert Phipps, director at Per Stirling Capital Management in Austin, Texas. "There's now a whole lot less reason to put money to work before the election."

Unofficially, the Industrial Average fell 381.15 points, or 1.35%, to 27,767.49, the lost 48.15 points, or 1.41%, to 3,360.48 and the Nasdaq Composite dropped 179.31 points, or 1.58%, to 11,153.18.

Earlier in the session, Federal Reserve Chair Jerome Powell warned that the US economic recovery remained far from complete.

Powell said the domestic rebound could still slip into a downward spiral if the is not effectively controlled and growth sustained.

Hopes that a stimulus deal was still possible had helped to recoup losses from last week that were sparked by the news that Trump had contracted Covid-19.

Consumer discretionary shares were among the biggest weights on the

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First Published: Wed, October 07 2020. 01:42 IST
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