By Kim Khan
Investing.com - Stocks capitulated Tuesday, giving up sizable gainst at the open to move into negative territory as it became clearer that a U.S. fiscal stimulus package may still take some time to put together.
The S&P 500 sank 0.4%, while the Nasdaq Composite was down 0.23%. The Dow Jones Industrial Average fell 0.45%, or 106 points. Among individual stocks, Delta Air Lines (NYSE:DAL) reversed early gains to be down 4% after slashing capacity on its summer routes and suspending its buyback program to conserve cash. Royal Caribbean Cruises (NYSE:RCL) fell 16% after it withdrew its guidance for the year, due to uncertainty over the coronavirus impact.
Stock index futures had been up as much as 5% overnight on hopes that U.S. stimulus measures would be announced today following statements by President Donald Trump.
Trump said Monday a payroll tax cut was definitely on the agenda and an announcement would come today, but reports later said the White House staff was surprised by his statement as there were many details to iron out.
Senate Majority Leader Mitch McConnell is reluctant to support a payroll tax cut, the Washington Post reported.
Republicans in the Senate are set to be briefed by the White House at a lunch meeting today. A press briefing is scheduled in the White House for 5:30 PM ET.