Stocks finished sharply lower Monday after the Senate failed again to advance a stimulus bill of about $2 trillion. The Nasdaq finished the day nearly flat.
Senate Minority Leader Chuck Schumer had said earlier Monday that approval of the massive stimulus bill was "very close."
Negotiations were continuing and Schumer said his goal was to get a deal completed Monday.
The vote was 49-46 vote. Sixty votes were needed to move forward with Majority Leader Mitch McConnell’s bill.
Treasury Secretary Steven Mnuchin told CNBC Monday that "we need to get this deal done (Monday)."
House Speaker Nancy Pelosi said on Monday that Democrats would unveil their own economic stimulus legislation.
"A $1.5 trillion stimulus package sounds like a lot, and it is,” said LPL Financial Equity Strategist Jeff Buchbinder. “But given the unemployment rate might be headed to double-digits and many impacted businesses won’t survive through the spring without some help, it probably won’t be enough.”
Stocks had gotten a boost early on but then settled lower after the Federal Reserve vowed to purchase unlimited amounts of government debt to confront "severe disruptions" from the coronavirus pandemic.
"While great uncertainty remains, it has become clear that our economy will face severe disruptions," the central bank said in a statement.
"Aggressive efforts must be taken across the public and private sectors to limit the losses to jobs and incomes and to promote a swift recovery once the disruptions abate."
The Dow Jones Industrial Average finished down 582 points, or 3.04%, to 18,591, the S&P 500 was down 2.93% and the Nasdaq eased 0.27%.
The trading floor of the New York Stock Exchange was empty for the first time ever as the exchange went fully electronic because of the pandemic.
Stock futures had pointed to sharp losses for Wall Street at the open of trading after the Senate over the weekend failed to advance the vote on the economic rescue package and global coronavirus cases rose to more than 367,000.
The Dow declined more than 17% last week, ending Friday at 19,173.98, the lowest level for the index since Oct. 10, 2016. The Dow is on pace for its worst month since 1931.
"While U.S. fiscal stimulus negotiations have faltered for the time being, we would expect Washington to get something done this week," said Jon Adams, senior investment strategist for BMO Global Asset Management. "Both Democrats and Republicans know that they need to pass a big package and do it quickly."
Meanwhile, U.S. economists at Morgan Stanley wrote in a report Sunday they now see gross domestic product falling 30.1% in April-June, which will drive up unemployment to an average 12.8% over the period, Bloomberg reported.
The number of confirmed global cases of the coronavirus has risen to 372,563, according to the Johns Hopkins Center for Systems Science and Engineering, and deaths increased to 16,381.
The U.S. has 41,708 cases of the virus and deaths have climbed to more than 470.
New York State reported coronavirus cases surged nearly 40% overnight to almost 21,000 with about 157 deaths.
Boeing (BA) - Get The Boeing Company Report received an upgrade from analysts at Goldman Sachs amid what the investment bank sees as a stock price that has few places to go but up - and a post-coronavirus world where travel by flight is “as popular as ever.” The Chicago aerospace giant's shares finished up 11.7% to $106.12.
In a research note to clients, Goldman Sachs analyst Noah Poponak upgraded shares of Boeing to buy from neutral and raised his one-year price target to $173 on expectations that air traffic will jet back to normal once the global pandemic abates and people begin traveling again.
The airplane maker also said it would temporarily suspend production operations at its Puget Sound area facilities in light of the state of emergency in Washington related to the coronavirus pandemic.
Among tech stocks, the chipmakers were higher. Intel (INTC) - Get Intel Corporation Report leaped 8.2% to $49.58; Advanced Micro Devices (AMD) - Get Advanced Micro Devices Inc. Report added 5.1% to $41.64; Microchip Technology (MCHP) - Get Microchip Technology Incorporated Report jumped 9.8% to $65.51, and Micron Technology (MU) - Get Micron Technology Inc. Report tacked on 5.9% to $38.25;.