Wall St. pulls back from record levels as additional stimulus uncertain

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Wall St. pulls back from record levels as additional stimulus uncertain

A slew of US stocks ended lower in a see-saw trading session on Tuesday after hitting record highs, as investors’ pessimism seemed to be fuelling up over the pandemic’s fiscal fallouts, while a growing grudge among market participants on whether the Senate would approve an additional pandemic aid check of $2,000, more than triple of a current $600 in a one-time stimulus pay-check, had been choking market optimisms.

In point of fact, Wall St. opened Tuesday’s market modestly higher with all three key indices hitting record highs, nonetheless, in a sudden turn of event that seemed to have bolted out of the blue, a majority of US stocks pared earlier gains and fell into a negative territory after the Senate Majority Leader Republican Mitch McConnel had cancelled an immediate consideration of a proposed hike in stimulus pay off to $2,000 from $600 over frets that an increase in one-off pay-check proposed by the US President Donald Trump, could have negative influences on a high-stake January 5 Georgia Senate election that would determine which side would dominate the US Senate over next four years.

In tandem, McConnel’s remarks came forth a day after the Democratic-led House of Representative had voted to approve the move to flesh up an influx of direct payment further, though McConnel was quoted saying on midday US trading hour that the chamber would address an increase in payments this week alongside other blazing issues likes of curb on mega-cap tech conglomerates, sapping investors’ morale further.

Wall St. edges lower as Senate Leader McConnel’s remarks send shockwaves

Citing statistics, in the day’s Wall Street closing bell, trade-sensitive Dow lost 0.22 per cent to 30,335.67 and benchmark S&P 500 shed 0.22 per cent to 3,702.04, still hovering at a spitting distance to their all-time closing highs, while tech-heavy Nasdaq jolted 0.38 per cent to round off the session at 12,850.22.

Meanwhile, addressing to Republican Senate Leader McConnel’s remarks that had turned the US stock indices upside down in midday US trading hour, a Chief Investment Officer at NovaPoint in Atlanta, Joseph Sroka said, “The move by Majority Leader McConnell to not endorse the $2,000 disbursements turned equity markets from green to red around midday.

The plan that was originally signed is baked in. The question as to whether the bigger individual checks get passed is up for debate”.