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U.S. Stocks Drop After Hope Fades for Expanded Aid: Markets Wrap

  • Small-cap stocks post their biggest decline in a month
  • FTSE soars on Brexit relief rally; pound claws back losses
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Expect 10% upside for Asian stocks in 2021, says Herald van der Linde, head of APAC equity strategy at HSBC.Source: Bloomberg
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U.S. stocks pulled back from record highs, with small-cap shares posting their biggest drop in a month, as prospects faded for bigger government aid checks to individuals. The dollar weakened.

The Russell 2000 Index tumbled almost 2%, while the S&P 500 finished only slightly lower. A gauge of global equities was set to close at a record after the U.S. House backed President Donald Trump’s proposal to boost aid checks for individuals, but pulled back from its high of the day as Senate Republicans blocked an attempt by Democrats to increase the direct payments to $2,000 from $600.