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Stocks drop after rescue package stalls in Congress

Stocks slumped further Monday after a rescue package to support the economy during the coronavirus crisis stalled in Congress. 

The Dow Jones industrial average dropped 582.05 points to end at 18,591.93, its first close below 19,000 since November 2016. The blue-chip average briefly wiped out its gains since Election Day 2016 when it slumped to session lows. 

The Standard & Poor’s 500 lost 2.9% to finish at 2,237.40, erasing all of its gains since President Donald Trump was inaugurated. Nine of the 11 sectors in the index closed lower, led by broad-based losses in energy, financial and real estate shares. On Friday, stocks posted their worst week since the financial crisis.

Stocks dropped Monday even as the Federal Reserve prepared to launch an expansion of lending programs in an effort to shield the economy from the virus. 

Top-level negotiations between Congress and the White House continued after the Senate voted against advancing a nearly $2 trillion economic rescue package again Monday following a failed procedural vote on Sunday. Over the weekend, the Democrats said the bill was tilted too much toward aiding corporations and would not do enough to help individuals and healthcare providers weather the crisis brought on by the pandemic.

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