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.


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.