Stocks erased early losses to turn solidly higher after the Federal Reserve delivered a rare, inter-meeting rate cut, dropping the range of its benchmark rate by half a percentage point. The Dow Jones Industrial Average was up 183 points, or 0.7%, at 26,886, while the S&P 500 advanced 27 points, or 0.9%, to 3,117. The Nasdaq Composite gained 51 ponts, or 0.6%, to 9,003.
Cheap and easy money doesn’t get people out of a sick bed or quarantine to go to work or buy stuff...
The stock market had already begun the “erasing the losses cycle” YESTERDAY, Dow up by 1,200 points, BEFORE the Fed acted.
I think sanity was already returning to the economy and the Fed’s actions today was not needed.
I think the Fed is over reacting now, just as the stock markets were over reacting last week.
Ten-year bond yield is plunging, down to all-time low of 1.02%.