U.S. stock futures fell in night trading Tuesday after President Donald Trump cut business talks until after the November election.
Dow futures fell 60 points. S&P 500 futures and Nasdaq 100 futures fell 0.3% and 0.2%, respectively.
In Tuesday's regular trading session, the Dow Jones Industrial Average closed 375 points after Trump tweeted that the White House is suspending talks with Democrats about a second coronavirus stimulus deal. At the start of the session, stocks rallied in hopes that there would be a second bailout to prop up markets as the coronavirus outbreak rages on.
"I have instructed my representatives not to stop negotiations until after the election if we pass an important stimulus bill that focuses on hardworking Americans and small businesses immediately after my victory," Trump said in a tweet on Tuesday.
The S&P 500 lost 1.4% and the Nasdaq Composite fell 1.57% on Tuesday.
"It's just so disruptive," Tom Block, Washington political strategist at Fundstrat, told CNBC. "There is no dealing with the president. In my opinion, this is negative for the market."
Some on Wall Street speculated that Trump's move was just a negotiating tactic, while others suggested the president really doesn't believe the economy needs another $ 2 trillion in budget spending.
Federal Reserve Chairman Jerome Powell said Tuesday the economy needed more aggressive fiscal and monetary stimulus to stimulate an economic recovery, which he said "had a long way to go".
Powell said the lack of support could "lead to a weak recovery and create unnecessary trouble for households and businesses" and prevent a recovery that has so far been faster than expected. "In contrast, the risks of exaggeration seem to be lower for now," added Powell.
"Chairman Powell said we need more incentives and this goes against the advice of the Federal Reserve Chairman, and the markets don't really like going against the Federal Reserve Chairman's advice … I wouldn't say that it's over for good, but I'd say it's a very negative sign and will likely push it until after the election, "added Block.
Cleveland Fed president Loretta Mester said later Tuesday that the end of stimulus talks means the economic recovery will be "much slower" than originally expected.
The Federal Open Market Committee will publish its minutes of its September meeting at 2:00 p.m. ET on Wednesday. The FOMC took no action on interest rates in September and kept them near zero.
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– with reports from CNBC's Pippa Stevens.