US stocks fade into the close as doubts about a rescue bill erase gains

• US stocks limped into the close on Tuesday, paring earlier gains, after Senate Majority Leader Mitch McConnell said he didn't expect Congress to pass another stimulus bill in the next two weeks.
• The uncertainty surrounding further economic relief dented optimism about the European Union's historic 750 billion euro ($860 billion) stimulus package.
• Oil prices rose, hitting the highest levels since March.
• Read more on Business Insider.

US stocks limped into the close on Tuesday, paring earlier gains, after Senate Majority Leader Mitch McConnell said he didn't expect Congress to pass another stimulus bill in the next two weeks.

The uncertainty surrounding further economic relief dented optimism about the European Union's historic 750 billion euro ($860 billion) stimulus package announced on Tuesday. Stocks in Europe rose to a four-month high on the news.

Shares of technology companies slumped following Monday's gains, which sent the S&P 500 to its highest level since February and the Nasdaq to another record. Shares of Amazon erased gains from early Tuesday, falling more than 1.5%.

Here's where US indexes stood at the 4 p.m. ET market close on Tuesday:

• S&P 500: 3,257.30, up 0.2%
• Dow Jones industrial average: 26,840.40, up 0.6% (160 points)
• Nasdaq composite: 10,680.36, down 0.8%

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Earnings season continued. Shares of IBM rose early in the session before closing lower. On Monday, the company reported earnings that beat Wall Street's expectations for earnings per share.

Coca-Cola gained after reporting profits that beat expectations. Lockheed Martin also climbed after reporting profits and sales that beat expectations and lifting its full-year outlook. Microsoft and Tesla are set to report quarterly earnings on Wednesday.

Oil prices rose, hitting their highest levels since March. West Texas Intermediate crude gained as much as 3.9%, to $42.40 per barrel. Brent crude, the international benchmark, rose 3.7%, to $44.89 per barrel, at intraday highs.

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The S&P 500 Energy Index gained more than 6%, the most of any industry, as oil lifted the sector. Shares of Occidental climbed as much as 15%, while Exxon Mobil and Chevron each gained more than 5%.

In the US, investors watched talks in Washington, DC, for signs of further coronavirus relief. Democrats and Republicans are facing pressure to pass more legislation to aid the economic recovery but remain split on key issues. House Minority Leader Kevin McCarthy told CNBC on Tuesday that more stimulus isn't likely to arrive before August.

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