Stocks Fall, Bonds Rise After Stimulus Talks Ended: Markets Wrap

Dollar jumps against most major peers; crude oil pares gains
Treasury yields tumble after Trump comment spurs refuge appeal

Bob Doll Likes Consumer Cyclical and Healthcare Stocks

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By Claire Ballentine and Vildana Hajric

October 5, 2020 at 6:00 PM EDT

Updated on

October 6, 2020 at 5:17 PM EDT

This article is for subscribers only.

U.S. stocks tumbled and bonds soared after President Donald Trump said he is ending stimulus talks until after the election, just hours after Federal Reserve Chairman Jerome Powell renewed his warning that the economy will stumble without additional fiscal support.

The benchmark S&P 500 slumped 1.4% after Trump tweeted his comments late in the trading session, erasing a gain of as much as 0.7%. The Dow Jones Industrial Average and Nasdaq Composite indexes also turned negative. Treasuries surged and the dollar jumped against most its major peers. An ETF that tracks the largest tech stocks fell an additional 0.6% in late trading after a House panel proposed a series of far-reaching antitrust reforms to curb the power of U.S. technology giants including Amazon.com Inc.and Alphabet Inc.