Business

Stocks drop as stimulus talks waver

Stocks closed lower on Tuesday as talks over a fifth COVID-19 relief package remained in limbo.

The Dow Jones Industrial Average closed down 158 points, or 0.6 percent, and the S&P 500 was down 22 points, or 0.6 percent.

The fate of a potential multitrillion-dollar fiscal injection into the economy has wobbled in recent weeks as President Trump has seesawed from ending the talks to boasting that he wants even more spending than Democrats.

One of the main points of contention in the negotiations has been the Democrats’ insistence that the price tag not dip below $2 trillion after originally pushing for $3.4 trillion. Republican negotiators increased their offer from $1 trillion to $1.8 trillion, but Speaker Nancy Pelosi (D-Calif.) said that other provisions of the bill remained inadequate, specifically on a strategy to fight COVID-19.

GOP senators, who were only able to agree on a $300 billion bill, have all but dismissed the talks, raising further questions as to whether the upper chamber would even consider passing a deal should the White House and Democrats agree to one.

Updated at 4:08 p.m.