⁍ An expected rebound in capital expenditures for U.S. companies could be more at risk.

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⁍ Concerns over the economic recovery and a possible contested U.S. election mount.

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⁍ Analysts expect capital expenditures for S&P 500 .SPX companies to rise by 6.3% in 2021 after dropping 11.4% this year.

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– The stock market had a rough day on Wednesday, with the Dow falling more than 400 points, its biggest single-day point drop since August, reports the Wall Street Journal. The S&P 500 and Nasdaq also were down more than 2%. Here’s a look at what’s going on: Capital expenditures: Analysts expect capital expenditures for S&P 500 companies to rise by 6.3% in 2021 after dropping 11.4% this year, reports Reuters. “Is it going to rebound in 2021? Probably, though there’s a lot of uncertainty out there,” says Peter Tuz of Chase Investment Counsel. “You have the election, you have COC and its impact on the economy around the world, and whether we’re going to see additional stimulus spending in the United States.’ Election uncertainty compounded by the failure of lawmakers to approve new fiscal stimulus helped push US stocks down sharply on Wednesday, with the Dow closing at lows last seen in late July. Goldman Sachs strategists say their forecast for a 10% rebound in S&P 500 capex, excluding energy, in 2021 assumes a ‘sharp recovery in economic and sales growth,’ but also assumes ‘that policy uncertainty declines from its currently elevated levels’ as questions around a vaccine for the virus and the election are resolved. Investors are focusing on the possibility of prolonged economic weakness, says Peter Cardillo of Spartan Capital Securities in New York. “That will hold back capital investments and things of that nature. It could be very negative going forward.”