US STOCKS-Wall Street ends down 1% after Trump calls off coronavirus economic relief talks

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* Powell warns recovery far from complete
* Indexes: Dow down 1.3%, S&P 500 down 1.4%, Nasdaq down
1.6%

(Updates close with volume, details)
By Caroline Valetkevitch
Oct 6 (Reuters) - U.S. stocks ended down more than 1% on
Tuesday after President Donald Trump said he was calling off
negotiations with Democratic lawmakers on coronavirus relief
legislation until after the election.
Stocks were higher before the remarks, but reversed course
after Trump made the comments on Twitter.
The S&P 500 fell to a session low shortly after the tweet,
taking the index down more than 2% from its session high.
Airline shares also tumbled, with United Airlines UAL.N ending
down 3.6% on the day, and the Cboe Volatility index .VIX
climbed to a session high.
"Much of the rally we've seen in the last week in particular
was based on hopes for an additional stimulus package," said
Robert Phipps, director at Per Stirling Capital Management in
Austin, Texas. "There's now a whole lot less reason to put money
to work before the election."
Cases of the virus are still on the rise across much of the
country, and hopes that a stimulus deal was still possible had
helped stocks to recoup recent losses sparked by the news that
Trump had contracted COVID-19.
The Dow Jones Industrial Average .DJI fell 375.88 points,
or 1.34%, to 27,772.76, the S&P 500 .SPX lost 47.66 points, or
1.40%, to 3,360.97 and the Nasdaq Composite .IXIC dropped
177.88 points, or 1.57%, to 11,154.60.
"Clearly the markets were pricing in some possibility of
stimulus," said Chris Zaccarelli, chief investment officer at
Independent Advisor Alliance in Charlotte, North Carolina.
But, he said, it was probably unlikely lawmakers would have
reached a compromise with their current proposals.
Earlier in the session, Federal Reserve Chair Jerome Powell
warned that the U.S. economic recovery remained far from
complete.
Powell said the domestic rebound could still slip into a
downward spiral if the coronavirus is not effectively controlled
and growth sustained. Consumer discretionary shares .SPLRCD were among the
biggest weights on the S&P 500, with the sector falling 2.1% on
the day, but most of the major sectors were down at least 1%.
Declining issues outnumbered advancing ones on the NYSE by a
1.54-to-1 ratio; on Nasdaq, a 1.37-to-1 ratio favored decliners.
The S&P 500 posted 31 new 52-week highs and no new lows; the
Nasdaq Composite recorded 114 new highs and 17 new lows.
Volume on U.S. exchanges was 10.55 billion shares, compared
with the 9.79 billion average for the full session over the last
20 trading days.