US Treasury Sec. Mnuchin reviews bipartisan bill with direct payments, S&P 500 stays in red

While testifying before the US Senate Committee on Banking, Housing, and Urban Affairs on Tuesday, US Treasury Secretary Mnuchin said ht is looking forward to reviewing the bipartisan COVID aid proposal.

Earlier in the week, a bipartisan group of US senators proposed a $908 billion relief bill that includes direct payments to local and state governments. Additionally, senators asked for an additional fund of $228 billion under the Paycheck Protection Program (PPP) for hotels, restaurants and other small businesses. 

Mnuchin noted that restaurants need grants rather than loans and added that he supports legislation to help PPP forgiveness.

S&P 500 looks to open in the negative territory

On Tuesday, the S&P 500 Index (SPX) gained more than 1% and closed at an all-time high of 3,678. However, the market mood seems to have turned cautious on Wednesday and the S&P 500 Futures are currently down 0.33% on the day, suggesting that the SPX will start the day in the red.