NEW YORK (Pakistan Point News / Sputnik - 24th March, 2020) US stocks fell 3 percent on Monday after Republicans and Democrats in the Senate failed to pass for the second time a $2 trillion stimulus package to reboot the economy from the damage caused by the novel coronavirus (COVID-19) epidemic.
The Dow Jones Industrial Average index, the broadest equities gauge on the New York Stock Exchange, closed down 582 points, or 3 percent, at 18,592.
The S&P500, barometer for the top 500 US stocks, slid 3.3 percent to 2,228, while the tech-heavy Nasdaq Composite dipped 0.3 percent to 6,861.
The Dow fell 17 percent last week while the S&P500 lost 15 percent and the Nasdaq 13 percent. The three indexes are down about 30 percent on the average for the year on a massive selloff related to fears that the United States was headed for a recession over the novel coronavirus epidemic, which has shut down large swathes of the US economy.
Earlier on Monday, Republican senators supporting President Donald Trump and rival Democrats sparred over what should go into a $2 trillion stimulus package, which failed to pass a second vote. The two sides reached broad agreement last week to provide help for both businesses and families, as large swathes of the US economy were shut to break the spread of the contagion.
Monday's slide in stocks also came as investors ignored the Federal Reserve's pledge to use all tools at its disposal, including buying as much bonds as needed, to support the US economy, maximize job creation and ensure price stability during the crisis. The Federal Reserve has already cut interest rates twice this month by a total of 1.5 percentage points to bring rates to a 0 and 0.25 percent range.
