U.S. stocks fell after President-elect Joe Biden unveiled a $1.9 trillion Covid-19 relief plan and the December retail-sales report came in weaker than expected, underscoring the coronavirus pandemic’s continued effect on the economy.
The Dow Jones Industrial Average fell 230 points, or 0.8%, to 30761. The S&P 500 lost 0.8%, and the Nasdaq Composite dropped 0.7%.
Some of the losses are from investor fatigue, traders said. The major indexes surged to fresh record highs in the first week of January, but keeping up the momentum has been more difficult. The S&P 500 is on track to end the week lower.
The size of Mr. Biden’s plan, even if Congress eventually shrinks it, took some by surprise.
“The magnitude obviously was surprising on the upside,” said Wei Li, head of investment strategy for BlackRock ’s exchange-traded fund and index investments for Europe, Middle East and Africa. “With the Senate majority, [taxes] could be coming in the medium term and that is something the market has to assess as well.”