Stocks end lower on Wall Street

Stocks gave up some of their recent gains Monday as hopes faded on Wall Street that Washington will come through with badly needed aid for the economy before Election Day.

The S&P 500 dropped 1.6%, its worst day in more than three weeks. The benchmark index had been up 0.5% in the early going following a report that China's economy grew at a 5% annual rate in the last quarter. The market's slide was broad, though technology, healthcare and communication stocks bore the brunt of the selling. Treasury yields were mixed.

The early gains evaporated by midafternoon ahead of another round of talks between Democratic and Republican leadership over a long-sought economic stimulus bill. Wall Street is expecting that lawmakers will agree on new stimulus measures for the economy, but the odds of that happening before the Nov. 3 election have dimmed. Over the weekend, House Speaker Nancy Pelosi said a deal would have to come within 48 hours — or by Tuesday — for a stimulus package to be enacted by Election Day.

Uncertainty over when more aid for the economy may arrive, signs new coronavirus infections are surging and the upcoming election will likely make for a volatile few weeks, analysts say.

“We're in a period here in the the next couple of weeks where the market goes sideways through the election ,” Terry Sandven, chief equity strategist at U.S. Bank Wealth Management.

The S&P 500 fell 56.89 points to 3,426.92. The Dow Jones Industrial Average of big blue chips dropped 410.89 points, or 1.4%, to 28,195.42. The Nasdaq composite extended its losing streak to a fifth day, losing 192.67 points, or 1.7%, to 11,478.88.

Small company stocks also fell. The Russell 2000 gave up 20.18 points, or 1.2%, to 1,613.63.