Stocks Slump on Lockdown Angst Amid Stimulus Limbo: Markets Wrap

Stocks slumped and Treasuries rallied as a resurgence in coronavirus cases added to concern about tougher restrictions that could slow down the economic recovery without further stimulus.

The S&P 500 sank as much as 1.5% as New York City -- the early epicenter of the pandemic in the U.S. -- prepared for the possibility of closing its schools while Chicago issued an advisory urging residents to avoid leaving home except for work and other essential activities. The Trump administration is stepping back from talks on a relief package and leaving it up to Congress to revive negotiations with House Speaker Nancy Pelosi, according to people familiar with the situation. All major groups in the American equity benchmark fell, with energy and financial companies among the worst performers. Benchmark 10-year Treasury yields moved away from the cusp of 1%.