Dow opens 500 points lower as investors eye stimulus bill approval

U.S. stocks opened lower on Monday, having Dow falling more than 500 points, even after the Federal Reserve announced new measures to keep markets working properly.

Investors at Wall Street are waiting Washington lawmakers to agree to an economic stimulus and rescue plan to cushion the economic blow from the coronavirus pandemic.

The Dow Jones Industrial Average opened more than 500 points lower, or 2.6 percent. The S&P 500 fell 2.8 percent while the Nasdaq Composite fell 1.8 percent.

One of the measures announced by the Fed was an open-ended asset purchase programme. The U.S. central bank will run in the “amounts needed to support smooth market functioning and effective transmission of monetary policy to broader financial conditions and the economy.”

U.S. Treasury Secretary Steven Mnuchin told CNBC that Congress is “very close” to getting a fiscal package done, adding that it must be pushed forward “today.”

“We’re using some of the funds we have, but we need Congress to approve additional funds today so that we can move forward and support American workers and the American economy,” Mnuchin added.