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Stocks tumbled on Tuesday as the market took a breather following a sharp rally in the previous session while investors assessed whether this rebound can continue.
The Dow Jones Industrial Average shrank 211.69 points to break for lunch Tuesday at 27,372.37.
The S&P 500 subtracted 17.21 points to 3,334.57.
The NASDAQ faded 20.95 points to 11,095.90.
Shares of airline companies led the declines. JetBlue, American Airlines and United were all down more than 3%. Delta dropped 2.5%, and Southwest pulled back by 2.4%.
The major averages fell to their lows of the day after Bloomberg News reported the daily positive rate of coronavirus cases is back above 3% for the first time in months.
In economic news Tuesday, the Conference Board said consumer confidence jumped much more than expected, hitting a print of 101.8 for September. Economists polled by Dow Jones expected consumer confidence to rise to 90.1 from 86.3 in August.
Political news is poised to potentially be a driver of market news this week, with the first debate between President Donald Trump and Democratic nominee Joe Biden set for Tuesday night.
Some Wall Street analysts believe the first debate of this cycle could be more consequential for the markets than most debates, with a clear victory by one candidate possibly creating significant market moves.
The climb for stocks on Monday came after mixed news about the coronavirus response over the weekend. On the bullish side for the market, Florida lifted capacity restrictions on restaurants over the weekend and Pelosi said she believed another relief bill was still on the table.
However, cases in the U.S. continued to rise once again, with Dr. Anthony Fauci saying on Monday that the U.S. is “not in a good place” as colder weather approaches.
House Speaker Nancy Pelosi said on Monday night that the Democrats were unveiling a new $2.2-trillion stimulus package, smaller than the more than $3 trillion proposed earlier in the crisis but still well above what Republican leaders have offered.
The new bill would include enhanced unemployment benefits and aid to airlines and state and local governments.
Prices for the 10-Year Treasury were higher, lowering yields to 0.64% from Monday’s 0.66%. Treasury prices and yields move in opposite directions.
Oil prices dropped $1.67 to $38.73 U.S. a barrel.
Gold prices took on $15.30 to $1,891.90 U.S. an ounce.
