Stocks extend losses as virus aid hopes fade

U.S. stock indexes pulled further away from their recent highs Friday as prospects for another aid package from Washington faded while a surge in virus cases threatens to inflict more damage on an already battered economy.

The S&P 500 slipped 0.1 percent, its third-straight decline since it set a record high on Tuesday. The benchmark index ended the week 1 percent lower after two weeks of solid gains. Losses in financial, technology, health care and other sectors outweighed gains in communication services stocks, industrial companies and elsewhere. Treasury yields fell broadly, a signal that traders were seeking to lessen their exposure to riskier holdings.

The latest bout of selling, which eased toward the end of the day, came as investors continue to hope for Washington to come through with another financial lifeline for people, businesses and state governments struggling as the corona

virus pandemic worsens. But an emerging $900 billion aid package from a bipartisan group of lawmakers has essentially collapsed because of continued partisan bickering.

“We still don’t have a deal in Congress for a rescue package,” said Randy Frederick, vice

president of trading and derivatives at Charles Schwab. “If it doesn’t happen, the market could struggle.”

The S&P 500 slipped 4.64 points to 3,663.46. The index had been down 34 points in the early going. The Dow Jones Industrial Average got a boost from Disney, which hit a new high. The index rose 47.11 points, or 0.2 percent, to 30,046.37. The tech-heavy Nasdaq lost 27.94 points, or 0.2 percent, to 12,377.87. Small company stocks, which have been making solid gains this month, also fell. The Russell 2000 smallcap index gave up 11.01 points, or 0.6 percent, to 1,911.70.

Technology companies and banks led the decline. Apple fell 0.7 percent and Bank of America dropped 1.9 percent.