Dow drops 200 points as traders mull Biden’s stimulus plan and soft retail-sales data

Dow drops 200 points as traders mull Biden’s stimulus plan and soft retail-sales data

Getty Images

US stocks sank on Friday as investors digested President-elect Joe Biden's stimulus plan and a December slump in retail sales.Biden rolled out a $1.9 trillion relief proposal on Thursday that includes $1,400 direct payments, state and local government aid, and expanded unemployment benefits. While Democrats' soft Senate majority increases the odds of a deal being passed, Republican opposition could strip the bill of some elements or push for higher taxes to offset its cost.Retail sales shrank 0.7% in December as COVID-19 lockdowns cut into holiday-season spending, according to Census Bureau data published Friday. Economists expected sales to hold flat from November.Watch major indexes update live here.

US equities fell on Friday amid a drop in retail sales and concerns that President-elect Joe Biden's stimulus proposal could lift taxes.

Biden unveiled a $1.9 trillion fiscal relief plan on Thursday that includes $1,400 direct payments, expanded federal unemployment benefits, and state and local government aid. Democrats' victories in Georgia runoff elections greatly improve the party's chances at passing such a sweeping stimulus measure.

Yet GOP opposition could strip the bill of some components before its passage. Lawmakers could also call for higher taxes to justify the legislation's hefty price tag, a move that would