US Stocks Edge Lower On Stimulus Uncertainty

US stocks edged lower overnight in choppy trading after hitting record highs, as investors worried about the path of economic reopening and whether the Senate would authorise additional pandemic aid cheques.

Modest gains in early trading brought stocks to an intra-day record, but the advance evaporated after US Senate Majority Leader Mitch McConnell blocked immediate consideration of the measure calling for an increase in stimulus payments from US$600 to US$2,000.

Final passage of the proposal would require 60 votes and the backing of a dozen Republicans.

McConnell said the chamber would address the increased payments this week along with limits on big technology companies and election integrity.

McConnell's comment comes a day after Democratic-led House of Representatives approved the move to bump up direct payments.

"The move by Majority Leader McConnell to not endorse the US$2,000 disbursements turned equity markets from green to red around midday," said Joseph Sroka, chief investment officer at NovaPoint in Atlanta.

"The plan that was originally signed is baked in. The question as to whether the bigger individual checks get passed is up for debate."

The Dow Jones Industrial Average fell 68 points, or 0.2 percent, to 30,335, the S&P 500 lost 8 points, or 0.2 percent, to 3,727 and the Nasdaq Composite dropped 49 points, or 0.4 percent, to 12,850. (Reuters)