NEW YORK, Dec 9 Reuters U.S. stocks closed lower on Wednesday, retreating from record levels as investors grew discouraged over the halting progress of economic stimulus talks, while a drop in Facebook shares provided an additional drag.
Investors are banking on a longawaited relief package to help buttress an economy battered from the COVID19 pandemic and related lockdowns that has led to millions of layoffs and overwhelmed the healthcare system.
U.S. Senate Majority Leader Mitch McConnell said lawmakers were still looking for a path toward an agreement on COVID19 aid, as the U.S. House of Representatives prepared to vote on a oneweek funding bill to provide more time for a deal.
We have been in a significant tugofwar between vaccine news and virus news, and the vaccine news has won, said Art Hogan, chief market strategist at National Securities in New York.
The tiebreaker in that tug of war has certainly been the potential for stimulus getting out of this Congress before they head home for the holiday, he added.
The Dow Jones Industrial Average fell 105.07 points, or 0.35, to 30,068.81, the SP 500 lost 29.43 points, or 0.79, to 3,672.82 and the Nasdaq Composite dropped 243.82 points, or 1.94, to 12,338.95.
Positive updates on the COVID19 vaccine development along with hopes for a fresh fiscal stimulus package have helped fuel a rise in Wall Streets main indexes to alltime highs, with the SP 500 surpassing 3,700 points for the first time on Tuesday.