Stocks fell by midday Wednesday, even after the Senate unveiled a new round of fiscal stimulus.
The Dow Jones Industrial Average fell 0.4%. The losses in the broader U.S. market were lead by tech, with the Nasdaq down 0.38%. The 10-Year Treasury yield fell to 0.60%. Yields fall when prices rise.
Investors have been wary of buying too many shares of tech companies ahead of earnings reports, which are met with sky-high valuations.
Large cap cyclicals were mostly down, though consumer discretionary was up a bit. Republicans revealed their $1 trillion stimulus bill that would include cutting the $600 weekly unemployment supplement down to $200 a week, and send $1,200 payments to most Americans.
Some investors may be concerned this is not enough to support consumer spend, holding the consumer over until a vaccine emerges. Consumer confidence, pressured of late, may not see a jolted as unemployment remains elevated. Consumer confidence fell in July and missed expectations. And investors had been worried about the political will for a sufficient bill.
Here were the 5 biggest losers on the Dow by 12.15 EDT:
McDonald’s beat revenue estimates, but missed earnings estimates, as a large marketing budget used to support sales ate into the operating margin.