U.S. stocks fall on worries about virus’ spread, but pare losses

Stocks are falling Monday as a new, potentially more infectious strain of the coronavirus has countries around the world restricting travel from the United Kingdom, raising worries that the economy is about to take even worse punishment.

The S&P 500 was 0.3 percent lower in afternoon trading, on pace for a second straight drop after setting a record on Thursday. But the index pared its loss as the day progressed, recovering from an earlier 2 percent drop.

The Dow Jones Industrial Average was up 56 points, or 0.2 percent, at 30,236, as of 2:17 p.m. Eastern time, after erasing an earlier 423 point loss. The Nasdaq composite was 0.2 percent lower.

It’s a busy day of trading, with plenty of forces pushing and pulling the market. Thin trading ahead of a holiday-shortened week may also be exacerbating moves, analysts said. Crude oil prices were also dropping on worries about disappearing demand, and Treasury yields slipped.

One big factor for the market is Congress, which finally appears set to act on a $900 billion relief effort for the economy. House and Senate leaders are planning to vote Monday on the deal, which would include $600 in cash payments sent to most Americans, extra benefits for laid-off workers and other financial support.

Economists and investors have been clamoring for such aid for months, and a recent upswing in momentum for talks had stock prices rising in anticipation of a deal. Analysts said some traders may be selling now to lock in profits, with the compromise all but assured and prices close to the highest they’ve ever been. Even after Monday’s drop, the S&P 500 is back only to where it was earlier this month.