Stocks flat as Congress wrangles over COVID-19 response

Stock markets on Wednesday held their ground as prospects faded that the next COVID-19 relief package in Congress would be done before August.

The Dow Jones Industrial Average was down 23 points, or 0.1 percent, and the S&P 500 was up 1 point, or zero percent.

Congress on Monday kicked off negotiations over a final COVID-19 bill in earnest with disagreements among Republicans over their ideal bill and, more broadly, between Republicans and Democrats over the size and scope of the bill.

Democrats are pushing for a larger bill, with more robust unemployment benefits and aid to state and local governments. The House has approved a $3 trillion relief measure.

Republicans are looking at a bill with a price tag of $1 trillion.

President Trump has pushed for a payroll tax cut, a policy many congressional Republicans oppose. Instead, they want to extend unemployment benefits at a more modest level, arguing that overly generous benefits exacerbate high unemployment.

A slew of benefits from March’s CARES Act are set to expire by the end of July, meaning many Americans will be left in limbo before a new package passes and is signed into law in early August.