Wall Street stocks moved higher after the bell on Wednesday as White House chief of staff Mark Meadows said Nancy Pelosi and Steven Mnuchin had made "good progress" on reaching a stimulus agreement. However, Senate majority leader Mitch McConnell said he was encouraging the White House not to agree on a major bill over concerns that it could divide Republican Party members just days before the USA election on 3 November.
Signs of opposition from Trump's Republican Party may have added to some caution in markets, however, slowing the move higher in USA borrowing costs.
It should, however, be noted that the Senate Majority Leader Mitch McConnell was recently spotted by CNBC's Carl Quintanilla, via a tweet, while saying, "Mr. McConnell's remarks, confirmed by four Republicans familiar with them, threw cold water on Mr. Trump's increasingly urgent push to enact a new round of pandemic aid before Election Day". "Investors are fixated on the shiny object, which is the stimulus deal". He said smaller company stocks have been gaining ground in a sign of confidence, while bond yields continue rising. "I would be surprised if a deal was reached".
The Dow Jones Industrial Average ended the day down 97.97 points, or 0.35%, while the S&P 500 dropped 0.22% and the Nasdaq Composite dropped 0.28%.
The S&P 500 - a gauge for the health of USA retirement and college savings reports - was up 0.45 percent, while the tech-heavy Nasdaq Composite Index was up 0.68 percent.
Wall Street shares started mixed in early deals mid-week as traders aren't sure which way to leap as they keep an eye on the latest on stimulus talks in Washington and digest more corporate earnings.
And shares of Tesla were up 0.39 percent.
Automobiles & Components (+3.51%), Banks (+1.32%) and Consumer Services (+1.19%) sectors gained the most. It rose as high as as 0.83% earlier Wednesday.
Gold, considered a hedge against inflation, currency debasement and uncertainty, has gained more than 26% this year, driven mainly by unprecedented levels of global stimulus to cushion economies from the coronavirus-induced slump. USA gold futures GCv1 rose 0.3% to $1,920.90 per ounce.
County reports 27th COVID-19-related death
According to the latest data from the federal government, over 8.5 million people have now been tested for COVID-19 in Canada . The Wyoming death total from COVID-19 remains unchanged at 57. "This virus has not gone away".
Investors have been focussing on United States economic stimulus amid global uncertainty about the continuing economic fallout from the coronavirus pandemic, which has slammed growth with social distancing restrictions, unemployment, crimped trade, as well as tourism and business closures.
The U.S. 10-year yield broke above 0.8 per cent to the highest since June and European yields also rose after Democratic House Speaker Nancy Pelosi expressed hope for political compromise on a bill this week. The Nasdaq composite extended its losing streak to a fifth day, falling 192.67 points, or 1.7%, to 11,478.88. It was last down 0.3% at 92.764.
Stocks indexes in Europe were mostly higher. Its rise helped lift the Australian dollar, weighed down by expectations of a rate cut in November, from Tuesday's three-week low.
The dollar hit a one-month low against a basket of currencies as optimism over a pre-election USA stimulus package bought riskier currencies.
The pound GBP=D3 rose 0.8% to $1.3050, its highest since October 14.
India's Sensex rose 0.6 per cent to 40,691.72.
The skittish mood reflected uncertainty over the prospects of a USA fiscal stimulus package meant to bolster a recovery from the economic damage caused by the coronavirus.
Oil prices inched up five cents to $40.88 USA a barrel. Both benchmarks rose in the previous session.