/US stocks slide from new highs as hope for expanded stimulus fades

US stocks slide from new highs as hope for expanded stimulus fades

Mitch McConnell
Senate Majority Leader Mitch McConnell.

US stocks pulled back from record highs on Tuesday as hopes for $2,000 direct stimulus payments faded. 

Senate Majority Leader Mitch McConnell blocked an attempt by Democrats to hold a vote on the $2,000 checks but said that the Senate would “begin a process” of considering a proposal to send the checks to Americans – a measure that Democrats and President Donald Trump have pushed for. 

Senate Minority Leader Chuck Schumer had called for an immediate vote in the Senate on Tuesday after the House passed supplemental legislation known as the CASH Act on Monday night. 

Here’s where US indexes stood after the 4 p.m. ET close on Tuesday:

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Intel soared 8% on Tuesday after Daniel Loeb’s activist hedge fund Third Point sent a letter to the chipmaker urging it to explore strategic alternatives, according to Reuters.

“Without immediate change at Intel, we fear that America’s access to leading-edge semiconductor supply will erode, forcing the US to rely more heavily on a geopolitically unstable East Asia to power everything from PCs to data centers to critical infrastructure,” the letter said.

Goldman Sachs said Snapchat’s parent company Snap Inc. will surge 45% as its product developments drive faster than expected revenue growth. The firm reiterated its Buy rating on the stock and set a $70 price target for the company, which helped propel Snap up 11% Tuesday. 

Arcturus Therapeutics fell as much as 53% to $40 on Tuesday, extending its losses for a second straight day after Wall Street was disappointed with the medical company’s COVID-19 vaccine updates. Analysts from Barclays, Raymond James, and Baird all downgraded their ratings for Arcturus on Tuesday. 

Oil prices were up. West Texas Intermediate crude increased 0.76%, to $47.89 per barrel. Brent crude, oil’s international benchmark, increased 0.35% to $51.04 per barrel. 

Gold increased 0.65%, to $1,883.50 per ounce. 

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