Market Commentary: Winning streak snaps

·           The S&P 500 and the Dow snapped a seven-day streak of gains and fell on growing uncertainty about a stalemate in Washington over a fiscal stimulus pact.

·           US Senate Republican leader Mitch McConnell said that White House negotiators had not spoken on Tuesday with Democratic leaders in the US Congress on coronavirus aid legislation after talks broke down last week.

·           Investors have been hoping Republicans and Democrats will resolve their differences and agree on another relief programme to support about 30 million unemployed Americans, as the battle with the virus outbreak was far from over, with US cases surpassing 5 million last week.

·           The Nasdaq fell more than 1%, extending recent losses and registering its biggest daily percentage decline since 23 July, with investors continuing to shed technology-related market heavyweights in favour of value names.

·           The Dow Jones Industrial Average fell 104.53 points or 0.38% to 27,686.91, the S&P 500 lost 26.78 points, or 0.80% to 3,333.69 and the Nasdaq Composite dropped 1.69% to 10,782.82.

·           A meeting between top US and Chinese trade officials on Saturday to review the first six months of the Phase 1 trade deal is still on the cards. On the virus front, California reported a sharp jump in cases. New Zealand’s main stock gauge lost more than 2% after evidence of new coronavirus cases in the country forced fresh restrictions.

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