• US stocks dropped on Tuesday as investors mulled Senate Republicans’ coronavirus stimulus package and a slew of earnings reports.
  • The GOP unveiled its initial fiscal relief plan on Monday. The $1 trillion package includes another round of $1,200 payments and additional funds for small business loans.
  • Still, experts expect a lengthy negotiation period as Republicans and Democrats spar over their respective proposals.
  • Earnings misses from 3M and McDonald’s weighed on major indexes.
  • Oil fell slightly, with West Texas Intermediate crude dropping as much as 0.8%, to $41.26 per barrel.
  • Watch major indexes update live here.

US stocks slid on Tuesday as investors braced for prolonged negotiations between Democrats and Republicans on a second round of economic stimulus.

The GOP revealed text for its initial fiscal relief plan – named the Health, Economic Assistance, Liability Protections, and Schools Act – Monday afternoon. The $1 trillion package includes another round of $1,200 direct payments, a $60 billion expansion to small business loans, and more than $100 billion for schools.

Senate Republicans’ spending plan comes in far below the $3.5 trillion sought by House Speaker Nancy Pelosi. Experts expect a lengthy negotiation process before a package is passed. The proposal also comes as expanded unemployment benefits expire, pulling a key lifeline from millions of jobless Americans as the coronavirus continues to wreak havoc on the economy.

Here’s where US indexes stood soon after the 9:30 a.m. ET market open on Tuesday:

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Investors also digested earnings misses from McDonald's and 3M. The restaurant chain missed expectations for quarterly profit and posted a 30% drop in revenue. 3M missed estimates for revenue and earnings as PPE sales failed to outweigh a broader slowdown in demand for its office products.

Oil slumped as demand weakness continued to drag on the market. West Texas Intermediate crude fell as much as 0.8%, to $41.26 per barrel. Brent crude, oil's international benchmark, slipped slightly before paring losses and trading largely unchanged.

Spot gold briefly reached a record $2,000 per ounce before erasing gains and turning lower. The precious metal has rallied through the summer amid a weakening US dollar and expectations for inflation to rise.

Bitcoin breached the $11,000 level in late Monday trading and held the level through Tuesday morning before sliding below the threshold. Like gold, the digital currency has benefited from a turn to alternative assets and concerns that inflation will drag on traditional assets in the near future.

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