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S&P erases 'Trump bump' as stimulus bill fails to advance in Senate

S&P erases 'Trump bump' as stimulus bill fails to advance in Senate
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Stocks extended their monthlong losing streak Monday, brushing aside aggressive interventions from the Federal Reserve as the Senate failed to advance a massive economic stimulus bill.

The S&P 500 closed at 2,237, down 67.5 points or 3 percent. The decline wiped out all of the gains made since President TrumpDonald TrumpNYT: Rep. Perry played role in alleged Trump plan to oust acting AG Arizona GOP censures top state Republicans McCain, Flake and Ducey Biden and UK prime minister discuss NATO, multilateralism during call MORE took office, when the S&P stood at 2,270.

The Dow Jones Industrial Average closed at 18,592, also down 3 percent, marking its first sub-1,900 close in more than three years.

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The market rout followed a dramatic morning announcement from the Federal Reserve that it would buy as many bonds as necessary to keep the financial system afloat. The announcement, made before trading began at 9:30 a.m. EDT, gave a brief jolt to futures trading.

But later in the day, Senate Democrats blocked a $1.18 trillion stimulus package in order to push for greater oversight of potential corporate bailouts and more health funding. Tempers flared as Republicans accused Democrats of preventing passage of crucial aid.

Senate Minority Leader Charles SchumerChuck SchumerCapitol insurrection fallout: A PATRIOT Act 2.0? Schumer calls for DOJ watchdog to probe alleged Trump effort to oust acting AG Student loan forgiveness would be windfall for dentists, doctors and lawyers MORE (D-N.Y.) vowed to wrap up negotiations with Treasury Secretary Steven MnuchinSteven MnuchinPence delivers coronavirus task force report to Biden Treasury imposes additional sanctions on Cuba over allegations of 'serious human rights abuse' Treasury Department sanctions inner circle of Russian agent Derkach for election interference MORE by day's end.

Businesses nationwide are shutting their doors and losing customers as people stay home to avoid spreading the disease. Many companies have started laying off workers and are calling for quick support from the federal government.

Economic forecasters are predicting a dire fallout from the coronavirus pandemic, with Morgan Stanley estimating an annualized 30 percent contraction in the second quarter, the largest in U.S. history, and an unemployment spike to 12 percent, higher than the peak rate of the Great Recession.