Stocks drop as stimulus talks waver

Stocks drop as stimulus talks waver
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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 TrumpDonald TrumpMeghan McCain: Democrats 'should give a little credit' to Trump for COVID-19 vaccine Trump testing czar warns lockdowns may be on table if people don't get vaccinated Overnight Health Care: CDC details Massachusetts outbreak that sparked mask update | White House says national vaccine mandate 'not under consideration at this time' MORE has seesawed from ending the talks to boasting that he wants even more spending than Democrats.

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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 PelosiNancy PelosiOn The Money: Justice Department says Trump's tax returns should be released | Democrats fall short of votes for extending eviction ban House adjourns for recess without passing bill to extend federal eviction ban Photos of the Week: Olympic sabre semi-finals, COVID-19 vigil and a loris MORE (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.