Connect with us

Business

Another foul day on Wall Street after the surprise Fed rate cut

Published

on

 


(Reuters) – Wall Street tumbled in a volatile session on Tuesday after the US Federal Reserve surprised investors with a half percentage point drop in interest rates, amplifying the fears about the magnitude of the impact of the coronavirus on the economy.

The top three U.S. stock indexes closed almost 3% lower after the Fed's first emergency rate cut since the 2008 financial crisis.

The drop in rates underscored the concern of the US central bank over the new coronavirus, which spread worldwide after it appeared at the end of last year in China. He intervened two weeks before a scheduled policy meeting, during which traders had fully assessed the price at a reduction of 50 basis points.

Shares initially jumped more than 1% but then fell as traders wondered if pumping more money into the financial markets would solve the central problem – a drop in trading activity then that workers and consumers stay at home.

"The rate cuts underscore the magnitude of the problem facing the global economy," said Peter Kenny, founder of Kenny’s Commentary LLC and New York's Strategic Board Solutions LLC.

"The markets would normally welcome a rate cut and they hoped for it. Now that we have it, the question is, what is the next step? "

The 10-year Treasury yield fell below 1% for the very first time as nervous investors withdrew money from the stock market.

The S&P Financials index fell 3.7%, reflecting the difficulty banks have in making profits in low interest rate environments.

On Friday, Wall Street experienced its biggest weekly decline in more than a decade, as growing cases of influenza virus outside of China fuel fears of a global recession.

Traders work on the floor of the New York Stock Exchange (NYSE) in New York, the United States, on March 3, 2020. REUTERS / Brendan McDermid

Earlier on Tuesday, finance ministers and central bank governors from the Group of Seven pledged to take appropriate measures to support their economies.

"There is a real fear that things will get worse and there is no point in waiting for these fears to materialize," said Jim Bianco, president of Bianco Research in Chicago, about the Fed rate cut. . "You can always cancel the rate cut if it does not materialize."

The Dow Jones Industrial Average fell 2.94% to end at 25,917.41 points, while the S&P 500 lost 2.81% to end at 3,003.37.

The Nasdaq Composite fell 2.99% to 8,684.09.

As with other recent sessions, the volume has been heavy on the US stock exchanges, with 14.7 billion stocks changing hands versus an average of 9.8 billion stocks in the past 20 days.

The top 11 S&P sectors all fell, with the Information Technology index falling 3.8%. Apple and Microsoft fell 3.2% and 4.8% respectively.

Tuesday's liquidation left the S&P 500 down about 11% from its record high on February 19.

Healthcare equipment maker Thermo Fisher Scientific rose 1.8% after launching an $ 11.6 billion offering for German genetic testing company Qiagen.

Protective mask maker Alpha Pro Tech has jumped nearly 20%.

slideshow (3 Pictures)

Declining issues outnumbered rising ones on the NYSE by a ratio of 1.67 to 1; on the Nasdaq, a ratio of 2.45 to 1 favored the decliners.

The S&P 500 posted two new 52-week highs and 32 new lows; Nasdaq Composite recorded 19 new highs and 185 new lows.

Additional reports from Medha Singh, Sanjana Shivdas and Sruithi Shankar in Bengaluru, and Caroline Valetkevitch in New York; Editing by Sandra Maler and Jonathan Oatis

What Are The Main Benefits Of Comparing Car Insurance Quotes Online

LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos



picture credit

ExBUlletin

to request, modification Contact us at Here or [email protected]

1 Comment

1 Comment

    Leave a Reply

    Your email address will not be published.