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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 John TrumpObama slams Trump in Miami: 'Florida Man wouldn't even do this stuff' Trump makes his case in North Carolina, Ohio and Wisconsin Pence's chief of staff tests positive for COVID-19 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 SchumerTrump expressed doubt to donors GOP can hold Senate: report Trump announces opening of relations between Sudan and Israel Five takeaways on Iran, Russia election interference MORE (D-N.Y.) vowed to wrap up negotiations with Treasury Secretary Steven MnuchinSteven Terner MnuchinSunday shows preview: Trump, Biden gear up for final sprint to Election Day Hillicon Valley: Treasury sanctions Russian group accused of targeting critical facilities | Appeals court rules Uber, Lyft must comply with labor laws | Biden: Countries that target US elections will 'pay a price' Finger-pointing picks up in COVID-19 relief fight 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.