Stocks fall on Wall Street; hopes fade for stimulus

( AP) Stocks gave up early gains and closed lower Wednesday, adding to Wall Street's losses from a day earlier.

The S& P 500 fell 0.7% after spending the morning swaying between small gains and losses. Companies that rely on consumer spending, banks and technology and communication stocks bore the brunt of the selling. Trading in stock markets overseas was subdued as coronavirus counts climb around the world, raising the risk of more government restrictions on businesses. Treasury yields fell, while prices for crude oil and gold rose.

The decline came as talks between Democrats and Republicans in Washington over another economic stimulus package continued to drag on, dimming investors' hopes for a deal that can deliver more aid for the U. S. economy in the near term.

Treasury Secretary Steven Mnuchin and House Speaker Nancy Pelosi spoke by phone again Wednesday morning but didn't reach an agreement, Pelosi aide Drew Hammill tweeted, adding that the two plan to speak again Thursday. Mnuchin said at a conference sponsored by the Milken Institute that it would be "difficult" to get a deal done before the presidential election next month.

"The time for being able to pull this off is now coming to a close," said Rod von Lipsey, managing director at UBS Private Wealth Management. "The market has been listless because it understands that it's probably not going to happen."

Investors are still anticipating some kind of an aid package eventually passing, he said, but it will now likely be after the election.