US stocks slide as investors await further stimulus negotiations

NYSE traders
  • US stocks finished the day down on Tuesday, as the tech-heavy Nasdaq 100 index led the Dow Jones and S&P 500 indices.
  • Investors likely have their eyes on tonight’s US presidential debate, as President Donald Trump squares off with former Vice President Joe Biden.
  • Negotiations for additional fiscal stimulus to help combat the economic decline spurred by the COVID-19 pandemic continued on Tuesday, with House Speaker Nancy Pelosi talking with Treasury Secretary Steve Mnuchin.
  • Negotiations between the two are set to continue on Wednesday.
  • Watch major indexes update live here.

US stocks finished the day lower on Tuesday, with the tech-heavy Nasdaq 100, the Dow Jones, and S&P 500 indices all sliding into the close.

Investors have their eyes on tonight’s US presidential debate, as President Donald Trump squares off with Democratic nominee Joe Biden for the first time ever.

The heightened politics heading into the November election have reduced investors’ hope that Congress will pass an additional stimulus package.

But that hasn’t stopped House Democrats from proposing a new COVID-19 relief package worth $2.2 trillion. It would restore the $600 weekly unemployment benefit and has many measures designed to appeal to Republicans, including aid to the airline industry.

House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin discussed the stimulus package on Tuesday during a nearly one-hour phone call. Negotiations are set to continue on Wednesday.

Here’s where US indexes stood soon after the 4:00 p.m. market close on Tuesday:

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Consumer confidence posted the biggest spike in 17 years as consumers start to bounce back from the economic decline caused by the COVID-19 pandemic. 

JPMorgan agreed to pay the largest-ever penalty to the CFTC of $920 million and admit wrongdoing in order to resolve a criminal investigation into “spoof” trades spanning an eight-year period. 

According to UBS, investors can expect the presidential debate to produce little policy substance, though it could matter which candidate is thought to be the winner.

“Perceptions of performance and whether candidates were able to change the views of floating voters does make a difference,” UBS said.

The economist Mohamed El-Erian said on Monday that investors shouldn’t hold out hope for additional stimulus from Congress or the Federal Reserve.

Goldman Sachs said that a Democratic sweep in November would be “modestly positive” for US corporate earnings.

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Gold rose as much as 0.93%, to $1,899.14 per ounce. UBS laid out three reasons why investors should buy gold in a note published on Tuesday.

Oil prices slid as investors questioned if demand will sharply bounce back from the COVID-19 pandemic. West Texas Intermediate crude fell as much as 5.32%, to $38.41 per barrel. Brent crude, oil’s international benchmark, fell 4.87%, to $40.43 per barrel, at intraday lows.