Wall Street sank on Monday as hopes of a new round of fiscal aid were dashed and the number of new coronavirus cases rose by 79,303 new cases on Friday.
The Dow Jones industrial average fell more than 720 points by mid-morning, with the S&P 500 down 1.97% and the Nasdaq Composite down 1.6%.
The total number of coronavirus cases reached 8.6 million, with more than 225,000 deaths and a growing number of hospitalizations.
White House Chief of Staff Mark Meadows told CNN on Sunday that the Trump administration would “defeat”
“What we need to do is make sure we fight therapists and vaccines, take appropriate mitigation factors in terms of social distancing, and mask when we can,” Meadows said. “It’s an infected virus, just like the flu.”
The decline in stocks also comes amid stagnant hopes for a final agreement on a new round of fiscal assistance for the millions of families affected by the coronavirus pandemic.
Talks between Parliament Speaker Nancy Pelosi, California and Treasury Secretary Stephen Mnuchin “have certainly slowed down,” White House economic adviser Larry Kudlow told CNBC on Monday morning. “We are close, but there are still important political issues that divide us.”
“I think the recovery, although there is a lot more work … is probably going faster than most people thought,” Kudlow added.
The travel and hospitality sector suffered the most on Monday, with Wynn Resorts down 5.5 percent in the morning trading session, American Airlines down 6 percent and Norwegian Cruise Lines down nearly 9 percent.
Technical stocks also fluctuated after SAP, one of Europe’s key software companies, reduced its outlook for 2020 amid signs that businesses are cutting costs.
This is the last full week before election day, and the economy remains a priority for both presidential candidates as they end their campaigns amid rapidly growing economic uncertainty.
An increasing number of Wall Street participants have come to the conclusion that the “blue wave” in November is the country’s best shot for economic recovery. While markets generally favor lower tax rates and regulations, which are a hallmark of the Republican administration, the unprecedented job losses and economic disruptions caused by the coronavirus pandemic have left many watchdogs concluding that a united government could be more better prepared to provide critical fiscal support bitter guerrilla congress can not.