Stocks fell at opening Monday despite rallying prior on the Federal Reserve’s announcement earlier in the morning that it would buy an unlimited amount of bonds to counter the effects of the coronavirus pandemic.
The Dow Jones Industrial Average opened down 1.81%.
The S&P 500 and Nasdaq composite also opened down, 1.99% and 0.86%, respectively.
In overnight trading, stock futures were down as the Senate on Sunday failed to advance a $1.3 trillion relief package aimed at curbing the economic damage caused by the spread of the coronavirus. Trading on the S&P 500 was temporarily halted as losses hit 5%.
The Fed announcement temporarily reversed these losses before the markets opened, but then stocks returned to negative territory as investors wait to see if the Senate can move a bill curbing the economic fallout from the spread of the coronavirus.
“The inability of Congress to pass legislative relief to address the nation’s unprecedented economic challenges is failing the American people at their time of need,” said Mark Hamrick, senior economic analyst for Bankrate.
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Senate action on the relief package is not expected to occur until noon today when the chamber comes back into session. Senate Majority Leader Mitch McConnell, a Kentucky Republican, attempted to limit further damage in the markets by reconsidering the stimulus bill at 9:45 a.m. on Monday. Senate Minority Leader Chuck Schumer, a New York Democrat, objected to the motion.
