“Fiscal stimulus plan appears big enough to hold off a recession, but not for long,” Carter added. “But while it’s not as large as many market participants hoped, it does include many meaningful actions that can support markets.”

But the emergence of new, highly infectious strain of COVID-19 in Britain has raised fears of additional shutdowns, and prompted countries around the world to shut their doors to travelers from the United Kingdom.

The news sent airline stocks sliding, even with the prospect of $15 billion in payroll assistance for commercial carriers included in the stimulus deal. The S&P 1500 Airline index lost 1.2 per cent.

Tesla Inc became the most valuable company ever added to the S&P 500 and will account for about 1.69 per cent of the index. The electric car maker’s stock dropped 6.5 per cent.

Banks bucked the trend. The U.S. Federal Reserve released the results of its semiannual stress test late Friday and announced relaxed restrictions on buybacks and dividends. The S&P Banking index jumped 2.7 per cent.

The Dow Jones Industrial Average rose 37.4 points, or 0.12 per cent, to 30,216.45, the S&P 500 lost 14.49 points, or 0.39 per cent, to 3,694.92 and the Nasdaq Composite dropped 13.12 points, or 0.1 per cent, to 12,742.52.

Of the 11 major sectors in the S&P 500, financials and tech were the only percentage gainers.

Lockheed Martin Corp lost 1.9 per cent after announcing it would buy U.S. rocket engine maker Aerojet Rocketdyne Holdings Inc for $4.4 billion.



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