Stocks declined Wednesday as Wall Street weighed dimming prospects for a coronavirus relief package and as technology shares took a beating after Facebook (FB) - Get Report was sued by most of the states and the Federal Trade Commission for what they charged was anti-competitive behavior.
The Dow Jones Industrial Average ended off 105 points, or 0.35%, to 30,069, the S&P 500 fell 0.79% and the tech-heavy Nasdaq lost 1.94%.
Facebook shares fell $5.48, or 1.9%, to $277.92 after state attorneys general from at least 40 states and the Federal Trade Commission sued the social media giant for anti-competitive behavior, alleging it bought nascent competitors WhatsApp and Instagram to snuff out potential rivals.
Tesla (TSLA) - Get Report fell 7% to $604.48 after an analyst at J.P. Morgan put a $90 price target on the stock and said the electric vehicle maker "in our view and by virtually every conventional metric is not only overvalued but dramatically so."
The Dow, S&P 500 and Nasdaq had set all-time intraday highs earlier Wednesday following a surprise $916 billion coronavirus relief proposal from the White House.
Treasury Secretary Steven Mnuchin pitched the stimulus plan to House Speaker Nancy Pelosi in a telephone call on Tuesday afternoon. The White House largely has been absent from aid negotiations since Election Day, leaving Senate Majority Leader Mitch McConnell to lead the discussions.
McConnell and House Republican leader Kevin McCarthy both have put their support behind Mnuchin's offer. But Pelosi and Senate Democratic leader Chuck Schumer, while noting the White House proposal marked "progress," said not including supplementary jobless benefits in the package was “unacceptable."
McConnell said Wednesday that Democrats “poured cold water” on his offer to set aside some issues in the aid package, Bloomberg reported.
Stocks ended higher Tuesday, with the Nasdaq and S&P 500 closing at records, as Wall Street weighed prospects for a stimulus plan and the world witnessed a woman get the first inoculation with Pfizer's (PFE) - Get Report Covid-19 vaccine.
The Food and Drug Administration on Tuesday issued a positive initial review of the Covid-19 vaccine developed by Pfizer and Germany’s BioNTech (BNTX) - Get Report. The FDA will meet Thursday to determine whether to approve emergency use authorization for the vaccine.
The U.S. death toll from Covid-19, the disease caused by the coronavirus, has risen to 287,550, the most in the world, according to Johns Hopkins University. New infections per day have eclipsed 200,000 on average for the first time on record, the Associated Press reported.