US stocks slump as White House, Congress disagree on Covid relief package

The Nasdaq Composite Index, which lists US tech stock giants such as Facebook, Apple, Amazon, Netflix and Google, closed at 11,479, down 1.7 percent.

Washington D.C: US stocks slumped on Monday as investors reacted negatively to news that Congress and the White House have remained apart on a new relief package to help Americans financially distressed by the novel coronavirus measures.

The Dow Jones Industrial Average, the broadest stock indicator on the New York Stock Exchange, closed at 28,195, decreased 1.4 percent.

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The S&P, a barometer for the top 500 US stocks on the NYSE, settled at 3,426, off 1.6 percent.

The Nasdaq Composite Index, which lists US tech stock giants such as Facebook, Apple, Amazon, Netflix and Google, closed at 11,479, down 1.7 percent.

On Sunday, US House Speaker Nancy Pelosi said she was optimistic that legislation for a new economic stimulus could be pushed through before the November 3 presidential election.

White House Chief of Staff Mark Meadows also expressed hope on Monday that a deal was possible, saying the Trump administration had upped its initial $1.8 trillion offer to more than $1.9 trillion.

Congress approved the Coronavirus Aid, Relief and Economic Security (CARES) Act in March, dispensing roughly $3 trillion as paycheck protection for workers, loans and grants for businesses and other personal aid for qualifying citizens and residents.

Democrats have since been locked in a stalemate with Republicans, which control the US Senate, on a successive package to the CARES Act. The disagreement has mainly been over the size of the next relief package as thousands of Americans risked losing their jobs without further aid.