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Dow swings 600 points after Trump rejects stimulus plan


Dow swings 600 points after Trump rejects stimulus plan

By Anneken Tappe, CNN Business

Updated 4:12 PM ET, Tue October 6, 2020

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A woman wearing a mask walks by a "going out of business" sign as the city continues Phase 4 of re-opening following restrictions imposed to slow the spread of coronavirus on September 20, 2020 in New York City. The fourth phase allows outdoor arts and entertainment, sporting events without fans and media production. (Photo by Alexi Rosenfeld/Getty Images)

US jobs recovery is losing momentum

NEW YORK, NEW YORK - JULY 21: A shuttered business is shown on July 21, 2020 in the Brooklyn borough of New York City. As the United States economy continues to struggle due to the coronavirus pandemic, a surge in corporate bankruptcies is only adding to a difficult labor market. Through June 30 of this year, there have been over 3,600 Chapter 11 filings, including by such well-known companies as J. Crew, Neiman Marcus, Hertz and others.  (Photo by Spencer Platt/Getty Images)

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Jerome Powell holds a press conference on September 16, 2020.

Fed signals low rates through 2023

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Pandemic exposes harsh reality for small business owners

Millions of Americans are out of work. Why is the stock market soaring?

A screenshot of Alpana Chakravarti, a single mother of two who was laid off due to the pandemic, with her daughter.

Women bearing brunt of pandemic’s economic cost

He waited over 4 months for unemployment benefits

Fed Chair on stimulus: There’s little risk of overdoing it

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Mom of three: They shouldn’t have to worry how we can eat the next day

A woman wearing a mask walks by a "going out of business" sign as the city continues Phase 4 of re-opening following restrictions imposed to slow the spread of coronavirus on September 20, 2020 in New York City. The fourth phase allows outdoor arts and entertainment, sporting events without fans and media production. (Photo by Alexi Rosenfeld/Getty Images)

US jobs recovery is losing momentum

NEW YORK, NEW YORK - JULY 21: A shuttered business is shown on July 21, 2020 in the Brooklyn borough of New York City. As the United States economy continues to struggle due to the coronavirus pandemic, a surge in corporate bankruptcies is only adding to a difficult labor market. Through June 30 of this year, there have been over 3,600 Chapter 11 filings, including by such well-known companies as J. Crew, Neiman Marcus, Hertz and others.  (Photo by Spencer Platt/Getty Images)

Another 837,000 Americans filed first-time jobless claims

Ohio mom facing eviction: I’m just thinking about my kids

How Obama and Trump administrations compare on unemployment

Airline furloughs loom for thousands of workers

Furloughed worker: ‘I’m at the top of the roller coaster with no harness’

New York (CNN Business)Stocks took a dive Tuesday afternoon after President Donald Trump said he ordered an end to stimulus negotiations until after the November election.The Dow (INDU) swung more than 600 points following the announcement and closed down 1.3%, or 376 points. The S&P 500 (SPX) tumbled 1.4%, and the Nasdaq Composite (COMP) finished down 1.6%.”I have instructed my representatives to stop negotiating until after the election when, immediately after I win, we will pass a major Stimulus Bill that focuses on hardworking Americans and Small Business,” Trump tweeted.https://ix.cnn.io/graphr/graphics/20201006-dow-a08b7dc0-080f-11eb-8edd-a9db94f867f4/index.html?initialWidth=780&childId=responsive-embed-20201006-dow-a08b7dc0-080f-11eb-8edd-a9db94f867f4&parentTitle=Dow%20swings%20600%20points%20after%20Trump%20rejects%20stimulus%20plan%20-%20CNN&parentUrl=https%3A%2F%2Fwww.cnn.com%2F2020%2F10%2F06%2Finvesting%2Fdow-stock-market-stimulus%2Findex.htmlThe announcement comes just hours after Federal Reserve Chairman Jerome Powell once again called for more stimulus to keep the economic recovery going. He said the risk of doing too little in terms of stimulus was far greater than the risk of doing too much.But the President disagrees: “Our Economy is doing very well. The Stock Market is at record levels, JOBS and unemployment…also coming back in record numbers,” he added on Twitter.The unemployment rate stood at 7.9% in September, down sharply from the crisis peak. That said, it’s still the highest jobless rate on record going into a presidential election. The country still remains down 10.7 million jobs from February.The recovery has been a tale of two economies: For some, things have improved greatly since the economy has opened up again after the spring lockdown. But for millions of Americans, the economic situation is more dire than ever before. Whole industries have been devastated by the virus.Trump’s decision deals a major blow to those hoping for more stimulus to help the country get through this crisis. For jobless Americans, it means they will have to make ends meet with less money than at the start of the crisis, when the government provided a $600 weekly supplement to boost benefits. These benefits ran out at the end of July.Trump signed an executive order in August, bolstering benefits by a weekly $300 by diverting money from the Federal Emergency Management Agency. FEMA said that some states have already exhausted their allocated amounts. States could opt to add an additional $100 a week, bringing it to $400.It has been a wild few weeks for investors between the President’s Covid diagnosis, his hospitalization over the weekend, uncertainty surrounding the economic outlook, as well as the possibility of a contested election.— CNN’s Phil Mattingly contributed to this article.

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