U.S. stocks rose on Tuesday, the day Speaker Nancy Pelosi of California set as a deadline for a compromise stimulus deal that could be considered before the election. The S&P 500 was up nearly half a percent in early trading, after falling 1.6 percent on Monday.
On Monday, Ms. Pelosi instructed key Democratic lawmakers to work with top Republicans to try to resolve critical differences holding up a broad agreement with the Trump administration.
The directive came after she and Steven Mnuchin, the Treasury secretary, held their latest talks, speaking for nearly an hour by phone. A spokesman for Ms. Pelosi said there would be more clarity on the details by the end of Tuesday.
The odds of a last-minute deal remain long, with Democrats and the Trump administration still haggling over funding levels and policy issues. Even if they could agree, Senate Republicans have all but ruled out embracing a plan anywhere near as large as the more than $2 trillion package under discussion.
If such a deal were struck, Senator Mitch McConnell, Republican of Kentucky and the majority leader, said the chamber would consider it, but he also made a point of scheduling two separate votes in the coming days on narrower bills of the kind senators in his party are more willing to accept. One would revive a lapsed federal loan program for small businesses and the other would provide $500 billion for schools, testing and expired unemployment benefits.
President Trump has insisted in recent days that he wants to spend more than the $2.4 trillion Ms. Pelosi has put forward in negotiations, and claimed he could easily cajole enough Senate Republicans into supporting an agreement of that size — a notion that many of them have told his top deputies would never happen.
Still, Ms. Pelosi insisted she was optimistic a bargain could be reached and said she was intent on reaching one before a new Democratic administration began in January.
“I don’t want to carry over the droppings of this grotesque elephant into the next presidency,” Ms. Pelosi told her members. “We’ve got to get something big, and we’ve got to get it done soon and we’ve got to get it done right.”
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