"There remains no doubt that the regular or normal 'macro' inputs are little more than flotsam and jetsam in an ocean of uncertainty, in which politics and pandemic rule the waves," ADM Investor Services chief economist Marc Ostwald said.
House Speaker Nancy Pelosi said on Tuesday that she and US Treasury Secretary Steve Mnuchin were still talking, as a deadline she had set over the weekend for a vote on a new bill passed. President Donald Trump signaled on Tuesday that he wanted an even larger deal than the $2.2 trillion bill proposed by House Democrats, but Republicans are throwing cold water on the prospect of enacting a deal soon.
"The gap between the two sides has certainly narrowed in terms of the headline number with the Republicans upping their offer to $1.9trn, however splits still remain on state and local aid as well as liability protections for businesses," CMC chief markets analyst Michael Hewson said. "This would suggest that last night's optimism over the framework for a deal was somewhat misplaced, as once again Pelosi and Mnuchin agreed to pick up for further talks later this afternoon," he said.