McConnell says sides still 'far apart' in COVID relief talks; stocks pare gains
- Update: 3:14 p.m. ET Steve Mnuchin says there's still no agreement on a stimulus deal.
- Senate Majority Leader Mitch McConnell says both sides are "far apart" on a fiscal stimulus deal, denting earlier hopes negotiations were progressing.
- The broader market immediately pared gains after the news, with the S&P falling 0.7%.
- This morning Treasury Secretary Steve Mnuchin said he should know if the administration has an "overall understanding" with Democrats on a new fiscal stimulus package by Thursday, adding he was "hopeful".
- Mnuchin's comments added some juice to a modestly higher market, leading to a broad-based rally as cash moved to stimulus-sensitive sectors like Consumer Discretionary (NYSEARCA:XLY) and Industrials (NYSEARCA:XLI).
- Now, defensive sectors Consumer Staples (NYSEARCA:XLP) and Health Care (NYSEARCA:XLV) are in the lead and Industrials have turned negative.
- The S&P had been trading at its highs of the day just before McConnell spoke.
- (NYSEARCA:SPY) +1.1%, (NYSEARCA:TBT) +1.4%, (NASDAQ:TLT) -0.8%