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Senate adjourns without a coronavirus bill, and Covid aid deadlines approach: Here's how the headlines could affect your money

The Senate adjourned until November 9, meaning no coronavirus stimulus package before the election.

Senate Majority Leader Mitch McConnell, a Republican from Kentucky, wears a protective mask while walking to Senate Republican policy luncheons at Hart Senate Office Building in Washington, D.C., Oct. 26, 2020.
Stefani Reynolds | Bloomberg | Getty Images

Markets are down as the Senate adjourns without passing a coronavirus bill, and important Covid-19 assistance deadlines are coming up. Here's how the headlines could affect your money.

Markets dip

The Dow and the S&P 500 slipped Tuesday, though the Nasdaq Composite was up. Then, Wednesday morning, markets fell on news that the Senate had adjourned until November 9 without reaching a stimulus deal. 

Even with the sell-off, the S&P as of Tuesday's close was still up over 12% from this time last year.  That means you'd see a return of over eight times the annual inflation rate of 1.4% (the September 2020 Consumer Price Index).

Senate adjourns without a stimulus deal

Senate Majority leader Mitch McConnell on Tuesday adjourned the Senate until November 9, dashing hopes of a coronavirus stimulus package passing before the November 3 election. Last week, the House voted down the Republican-floated $500 billion "skinny bill," as it did not include provisions for individual $1,200 stimulus checks or state aid. 

In a letter to House Democrats Tuesday, Pelosi wrote, "From 'hoax' to hundreds of thousands dead, the White House has failed miserably — not by accident, but by decision."

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Important reminders about deadlines for Covid-19 assistance

There are still government-backed measures in place if you are struggling financially from the pandemic. Under the CARES Act, if you have a 401(k), 403(b), or a similar retirement account, you can still withdraw up to $100,000 without paying the usual 10% early withdrawal penalty. The deadline is December 31, 2020. 

Enhanced unemployment benefits, lasting up to 39 weeks instead of the usual 26, end December 31, 2020.

The CDC-imposed eviction ban is still valid through December 31, 2020. Holders of federally backed mortgages can still apply for six-month deferrals; there is no set deadline yet.

Words you've heard: 403(b)

A 403(b) plan is a tax-sheltered annuity plan for retirement, similar to a 401(k) but usually intended for employees of public schools, governments, and nonprofits. Usually 403(b)s have lower administrative costs and are administered by insurance companies rather than by mutual funds.

Although the daily news can have an impact on your wallet, remember to take a long-term outlook when it comes to decisions on spending, saving, and investing.

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