Amid conflicting narratives on whether the Trump Administration and the US Congressional Democrats would be able to reach a stimulus deal before the November 3 election day, all three key indices of Wall St. had rounded off the session lower on Wednesday, as investors’ belief over another round of trillion-dollar fiscal stimulus from the US Government appeared to have hit a dead-end.
On top of that, US Federal Reserve policymakers’ repeated call on a pandemic stimulus deal aimed at spearheading the recession-hit US economy’s recovery from a pandemic induced slump had added to further worries.
Wall St. falls in seesaw session as stimulus hopes remain elusive
In point of fact, a garrulous debate over the Capitol Hill regarding a potential fiscal stimulus before the November 3 election day had been tilting the US money markets over the recent weeks, while a number of controversial remarks from US lawmakers had White House executives had strained investors’ hope.
Earlier in the day, the White House Chief of Staff, Mark Meadows, was quoted saying that there had been a number of conflict of interests among the Congressional Democrats and the White House officials, though the US President Donald Trump said that he was “willing to lean into” working on an agreement despite growing oppositions from his own Republican party members.
Meanwhile, a downbeat remark from the US House Speaker Nancy Pelosi who had pushed down a Tuesday deadline for a US stimulus bill to Friday, had also taken a heavier toll on investors’ mind, while she had acknowledged that the bill might not be passed until after the election day.
Citing statistics, in the day’s Wall St. wind down, Dow fell 0.35 per cent to 28,210.82, S&P 500 shed 0.22 per cent to 3,455.56, while the tech heavy Nasdaq was nudged 0.28 per cent lower to 11,484.69 Besides, referring to a growing uncertainty over the US pandemic stimulus bill, a managing director at equity trading in Wedbush Securities in Los Angeles, Michael James said, “As long as she keeps dangling the carrot out there that there’s still a chance that something could get done investors continue to remain optimistic. ”