Stocks fell on Tuesday as tech shares were under pressure and lawmakers continued their debate over the next coronavirus relief package.
The Dow Jones Industrials tumbled 205.49 points to finish Tuesday at 26,379.28.
The S&P 500 slumped 20.97 points to 3,218.44.
The NASDAQ fell 134.18 points, or 1.3%, to 10,402.09.
Shares of Amazon slipped 1.8% and Netflix declined by 1.4%. Alphabet shares fell 1.7%. Facebook shares dipped 1.5% and Apple closed 1.6% lower.
Stocks that would benefit from an economic reopening rose. United and American Airlines gained more than 3% each. Delta advanced 1.7%. Carnival closed 4.2% higher and Norwegian Cruise Line jumped 6.3%.
Stocks were also under pressure after the release of disappointing quarterly numbers from McDonald’s and 3M.
McDonald’s shares slid 2.5% after the fast-food giant posted a quarterly profit that missed analyst expectations along with a 30% drop in overall revenue. 3M, another Dow component, dropped 4.8% after its quarterly earnings and revenue were lower than expected.
A plan unveiled by Senate Republicans would include relief for jobless Americans, another direct payment to individuals of up to $1,200, and more Paycheck Protection Program small business loan funds, among other provisions. It would also set federal unemployment insurance at 70% of a worker’s previous wages, replacing the $600 per week which states stopped paying out this week.
The plan comes as coronavirus cases continue to rise across the U.S. So far, more than 4.2 million infections have been confirmed along with at least 147,303 deaths in the U.S., according to Johns Hopkins University.
Thus far, more than 160 S&P 500 companies have reported calendar second-quarter earnings. Of those companies, 81% have reportedly beaten expectations.
Meanwhile, the Federal Reserve starts its two-day policy meeting on Tuesday, followed by an interest rate decision on Wednesday. The Federal Open Market Committee decided to maintain the target range for the federal funds rate at 0-0.25% at its last meeting in June as it continued to deal with the impact of the coronavirus pandemic on the U.S. economy.
Prices for the 10-Year Treasury gained ground, lowering yields to 0.58% from Monday’s 0.61%. Treasury prices and yields move in opposite directions.
Oil prices lost 52 cents to $41.08 U.S. a barrel.
Gold prices added $20.60 to $1,951.60 U.S. an ounce.