New York — Wall Street's main indices closed lower on Monday as Washington legislators appeared to struggle to reach an agreement on a coronavirus stimulus deal ahead of a Tuesday deadline that would make a relief package possible ahead of the November 3 elections.
“The lack of news on the stimulus [deal] is worrisome, compounded by worsening virus trends and uncertainty ahead of the elections,” said Mona Mahajan, US investment strategist at Allianz Global Investors in New York. As Wisconsin battled one of the worst coronavirus surges in the US, a judge on Monday reinstated restrictions. In New Mexico, the governor warned that the state's health-care resources might not be sufficient if cases keep rising at the current pace.
Wall Street's fear gauge was rising for a sixth straight session as election campaigns kicked into high gear. The election is “weighing on investor sentiment a bit and maybe there's incremental concern there will be a contested election,” according to Mahajan, citing poll movements and betting odds that reflect higher expectations of a Trump win.