World Indices

 Stocks Drop on Stimulus Deadlock as Banks Tumble: Markets Wrap

Stocks fell on speculation that recent gains have outpaced prospects for a quick end to the stalemate over fresh economic stimulus. Treasuries and the dollar climbed.

Banks led losses in the S&P 500, with JPMorgan Chase & Co. and Citigroup Inc. sinking as investors worried that third-quarter earnings signaled just a pause in pain from soured loans. Eli Lilly & Co. tumbled after putting its government-sponsored antibody test on hold due to potential safety concerns, hours after Johnson & Johnson paused its Covid-19 vaccine trial. Amazon.com Inc. closed little changed and Apple Inc. slumped after Monday’s surge in big tech. The online retailer kicked off its Prime Day sale event, while the tech giant unveiled its iPhone 12 line with 5G speed.

Asian stocks were set for modest declines after American equities slipped, with little sign for a quick end to the stalemate over fresh U.S. fiscal stimulus. Treasuries and the dollar climbed. S&P 500 futures opened flat after banks led losses on Tuesday. Equity futures were lower in Japan and Australia. Hong Kong’s markets are expected to resume after a tropical storm forced closures on Tuesday. Crude oil advanced, while gold retreated. Traders will be watching a speech from Chinese President Xi Jinping in Shenzhen on Wednesday, where he is expected to lay out a vision for the region’s growth.

Asia Stocks Slip Amid Earnings, Stimulus Deadlock: Markets Wrap

Asian stocks followed their U.S. counterparts lower Wednesday as earnings season began and there was no sign of a quick end to the fiscal stimulus stalemate. Treasuries and the dollar were steady.

Stocks slipped in Japan and South Korea and were little changed in Australia. Hong Kong’s markets are expected to resume trading after a tropical storm forced closures on Tuesday. S&P 500 contracts ticked higher after banks earlier dragged down the U.S. benchmark, with JPMorgan Chase & Co. and Citigroup Inc. sinking as investors worried that third-quarter earnings signaled just a pause in pain from soured loans. Eli Lilly & Co. dropped after saying that enrollment in a government-sponsored clinical trial of its antibody therapy had been paused out of safety concerns.