U.S. Stocks Drop With Spending-Aid Deal Elusive: Markets Wrap
U.S. stocks fell to the lowest in almost two weeks as Congress remained apart on a fresh government spending deal, denting hopes for a breakthrough before the election. Treasuries slipped with the dollar.
The S&P 500 Index fell more than 1.5% as opposition to a sizable aid package hardened in the Republican-controlled Senate and House Speaker told her caucus negotiators are still trying to reach a deal. Data showed key parts of the American economy are slowing two weeks ahead of the vote, while Federal Reserve officials warn the growth will slow without additional federal spending.
Futures on the Dow Jones are currently trading 140 points higher after House Speaker Nancy Pelosi said that differences were narrowing in the stimulus talks. The index ended 1.5% lower on Monday.
The Australian Dollar declined after comments from the RBA's assistant governor that short-term rates can fall below zero.
"The QE for life trade appears like it is not going away anytime soon, but that is not enough of reason to buy stocks now," Edward Moya, a senior market analyst at Oanda told Bloomberg.
Yield on the 10-year treasuries stood at 0.77%.
West Texas Intermediate crude fell 0.3% to $40.69 per barrel. Oil prices fell after an OPEC+ meeting made no mention of any changes to a plan to further ease output cuts from January.
Gold traded flat at $1,902.1/Oz.
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