New York (AFP)

The New York Stock Exchange sank into the red Monday on the eve of a deadline set by the Democratic Speaker of the House of Representatives to reach a budget compromise on a new plan for economic support to the United States.

Its flagship index, the Dow Jones Industrial Average, lost 1.44% to 28,195.42 points.

The Nasdaq, with strong technological coloring, dropped 1.65% to 11,478.88 points and the extended S&P 500 index fell 1.63% to 3,426.92 points.

These three major indices had started the session in the green before falling back.

Democratic Congresswoman Nancy Pelosi and Treasury Secretary Steven Mnuchin met on Monday to try to narrow their differences on the terms of a new aid plan for American businesses and households.

Ms Pelosi set a 48-hour deadline on Sunday to reach a compromise, but market participants appeared wary of any progress.

According to Sam Stovall of CFRA, Wall Street's retreat on Monday is "a response to the declining possibilities for a stimulus plan to be voted on before the election (November presidential, editor's note) and to the rise in concerns about the fact that there will also be no plan after the election. "

Even if Democrat Joe Biden wins against Donald Trump on November 3, Republicans could retain their majority in the Senate, which would have the effect of "paralyzing Congress", observes Mr. Stovall.

The results season also continued on Wall Street, where the American oil services group Halliburton (-0.68%), which has faced the decline in exploration and drilling activities since the start of the pandemic, recorded its fourth consecutive quarter of losses.

Netflix, Tesla and Coca-Cola will share their quarterly report this week.

Among the other values ​​of the day, the American group ConocoPhillips (-3.17%) announced Monday its intention to buy its competitor Concho Resources (-2.76%), specializing in the exploitation of shale oil, for 9, 7 billion dollars, a new sign of consolidation in a sector shaken by the pandemic.

American Airlines (+ 0.80%) rose after announcing its intention to put the 737 MAX back into service at the end of the year, Boeing's flagship aircraft which is still awaiting the green light from the authorities to fly back after two accidents with kills 346.

Market players also digested China's third-quarter GDP figures, which jumped 4.9%, according to figures released Monday by the National Bureau of Statistics (SNB), marking a boost as the Most of the major economies were weighed down by the Covid-19 pandemic.

However, this increase is lower than the forecasts of a group of analysts polled by AFP, who expected an increase of 5.2%.

© 2020 AFP