Stocks end lower ahead of first debate between Trump, Biden
Stocks ended with moderate losses Tuesday as investors waited for the first debate between President Trump and Democratic challenger Joe Biden.
Banks, energy companies and stocks that depend on consumer spending had some of the biggest losses. The price of oil fell 3.2%, dragging much of the energy sector down with it.
Some technology stocks, which have long been the biggest driver of this year’s stock market moves, posted gains. Advanced Micro Devices closed up nearly 3% and Facebook rose nearly 2%. Twitter closed up 1.3%.
The Trump-Biden debate comes as COVID-19 deaths worldwide crossed 1 million. Cases in the U.S. are on the rise again as states attempt to reopen schools and factories. Tens of millions of Americans remain out of work.
Investors remain uncertain whether the recovery that happened over the summer was sustainable, and whether the newest surge of cases will be as dramatic as the one in June. The uncertainty has been a big reason stocks have struggled in September, after rallying the entire summer. The Standard & Poor’s 500 index is on track to fall 4.7% this month, it’s worst month since March when the stock market plunged sharply as the COVID-19 pandemic spread to the U.S.
The S&P 500 index fell 16.13 points, or 0.5%, to 3,335.47, after rallying the day before. The Dow Jones industrial average dropped 131.40 points, or 0.5%, to 27,452.66 and the technology-heavy Nasdaq composite lost 32.28 points, or 0.3%, to 11,085.25.
Markets are watching the November election’s effect on tax policy and how long it might take to determine the winner.
Investors’ confidence has been supported by infusions of central bank support into struggling economies and the hope for development of a coronavirus vaccine.
Congress still is arguing over the size of a new support package after additional unemployment benefits expired. House Speaker Nancy Pelosi and Treasury Secretary Steven T. Mnuchin have agreed to hold another round of stimulus talks. However, with the death of Supreme Court Justice Ruth Bader Ginsburg, Congress has redirected much of its attention to President Trump’s nominee to replace her.
The last jobs report before the election will come out Friday. The number is likely to be not only important for the market to determine whether reopenings are still moving forward, but politically important for both GOP and Democratic messaging heading into the election. Economists expect 850,000 jobs were created in September, with an unemployment rate of 8.2%.
