Stocks fell sharply on Monday ahead of a key deadline set by House Speaker Nancy Pelosi to reach a deal on new coronavirus stimulus before the election while Covid-19 cases rise.

The Dow closed 410.89 points lower, or 1.4%, at 28,195.42. Earlier in the day, the 30-stock average was up more than 100 points. The S&P 500 dropped 1.6% to close at 3,426.92 and the Nasdaq Composite pulled back 1.7% to 11,478.88.

Shares of Big Tech contributed to the decline. Alphabet, Microsoft, Apple and Amazon were all down at least 2%. Facebook dipped 1.7%. Energy and tech were the worst-performing S&P 500 sectors, dropping 2.1% and 1.9%, respectively.

Pelosi, D-Calif., gave the Trump administration on Sunday 48 hours to reach an aid deak before the Nov.3 election. Pelosi and Treasury Secretary Steven Mnuchin were also slated to speak Monday afternoon.

However, The Washington Post reported, citing sources, that a deal between Pelosi and the administration was not “sounding imminent.” The news sent the major averages to their lows of the day.

Tuesday’s session could also see volatile trading around corporate earnings. Consumer products company Procter & Gamble will release results before the bell, while Snap and streaming video giant Netflix will report after the market closes. Shares of Dow component IBM fell 3% in extended trading after the company reported its third-straight quarter of declining revenue.

Plan A : Long if market doesn't retrace much and supported firm above 3442. Targets are 3456, 3473 and 3489.

Plan B : Short if market failed to support above 3442. Targets are 3419, 3398 and 3365.

U.S. stock futures rose in early Tuesday morning trade ahead of a deadline for a new fiscal stimulus deal from Washington.

The move in futures comes after House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin “continued to narrow their differences". Monday afternoon phone call to discuss another stimulus package, according to Pelosi spokesman Drew Hammill. The speaker said that Tuesday is the deadline to reach an agreement before the Nov. 3 election.

The stock market suffered a broad decline during Monday’s session, with the Dow shedding 410 points and the S&P 500 and Nasdaq Composite both losing just over 1.6%. All 11 S&P sectors finished in the red. The slump marked the fourth down day in five for the Dow and the S&P 500, while it was the fifth-straight negative session for the tech-heavy Nasdaq.

Stimulus negotiations have hung over the market for months after the main provisions from the CARES Act expired at the end of July. Since then, job growth has slowed but consumer spending has continued to recover. However, some indicators have shown that savings built up by the massive economic relief package are starting to run out.

Plan B : Short if market failed to support above 11734. Targets are 11698, 11654 and 11615.