Stocks drop as stimulus talks waver

Stocks opened lower on Tuesday as talks over a fifth COVID-19 relief package remained in limbo.

The Dow Jones Industrial Average dropped 100 points, or 0.3 percent, and the S&P 500 was down 7 points, or 0.2 percent.

The fate of a potential multitrillion-dollar fiscal injection into the economy has wobbled in recent weeks as President TrumpDonald John TrumpTwo ethics groups call on House to begin impeachment inquiry against Barr Trump relishes return to large rallies following COVID-19 diagnosis McGrath: McConnell ‘can’t get it done’ on COVID-19 relief 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 PelosiTwo ethics groups call on House to begin impeachment inquiry against Barr McGrath: McConnell ‘can’t get it done’ on COVID-19 relief On The Money: Trump faces unusual barrier to COVID-19 aid in GOP allies | Advocates plead for housing aid as eviction cliff looms 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.

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