Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Dow drops 950 points after the Fed cuts rates, giving back more than half of Monday’s surge
CNBC.Com ^ | Published Mon, Mar 2 20206:02 PM ESTUpdated 10 min ago | Fred Imbert, Jesse Pound, Eustance Huang

Posted on 03/03/2020 11:38:30 AM PST by BradtotheBone

Stocks fell sharply in volatile trading on Tuesday as an emergency rate cut by the Federal Reserve failed to assuage concerns of slower economic growth due to the coronavirus outbreak. The decision to cut rates by half a percentage point came two weeks before the Fed’s scheduled meeting as the central bank felt it was necessary to act quickly to combat the effect of the virus spreading worldwide. It’s the first such emergency action coming in between scheduled meetings since the financial crisis.

The Dow Jones Industrial Average traded 950 points lower, or 3.6%, after rising more than 300 points earlier in the day. The 30-stock average gyrated between sharp gains and solid losses after the decision was announced. The S&P 500 and Nasdaq Composite were both down at least 3.5%. Investors, in turn, loaded up on U.S. Treasurys, pushing the benchmark 10-year yield below 1% for the first time ever. Gold, meanwhile, jumped 3.1% to $1,644.50 per ounce. “It’s great that the Federal Reserve recognizes that there’s going to be weakness, but it makes me feel, wow, the weakness must be much more than I thought,” CNBC’s Jim Cramer said on “Squawk on the Street” right after the sudden cut. “I’m now nervous. I’m more nervous than I was before.”

(Excerpt) Read more at cnbc.com ...


TOPICS: Business/Economy
KEYWORDS: covid19stockmarket; fed; fedrate; stockmarket
Navigation: use the links below to view more comments.
first 1-2021-4041-6061 next last
Not looking good....
1 posted on 03/03/2020 11:38:30 AM PST by BradtotheBone
[ Post Reply | Private Reply | View Replies]

To: BradtotheBone

Makes no sense.

That should have driven the market up................


2 posted on 03/03/2020 11:41:16 AM PST by Red Badger (If people were to God like dogs are to people, the world would be a really great place..............)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Red Badger

It is difficult to overcome the media-driven panic and the deep stater shenanigans all over the place at every level. However, this too shall pass. MAGA! KAG!


3 posted on 03/03/2020 11:42:46 AM PST by hal ogen (First Amendment or Reeducation Camp???)
[ Post Reply | Private Reply | To 2 | View Replies]

To: All

So the fed does this after the rebound? I have no confidence in this guy, none.


4 posted on 03/03/2020 11:42:50 AM PST by gibsonguy
[ Post Reply | Private Reply | To 1 | View Replies]

To: Red Badger

The market was up about 600 at one point.

The index funds are moving this market. Wild gyrations.


5 posted on 03/03/2020 11:43:29 AM PST by Obadiah (Kill the deep state or lose the Republic.)
[ Post Reply | Private Reply | To 2 | View Replies]

To: BradtotheBone

The fed cutting the rate in HALF looked like an act of desperation..early this morning the stock market was up slightly they should have left things alone and seen what happened, there was NO reason to do such a drastic rate cut, a quarter I can understand but half??


6 posted on 03/03/2020 11:43:57 AM PST by Sarah Barracuda
[ Post Reply | Private Reply | To 1 | View Replies]

To: hal ogen

Commie media panic to hurt Trump..that is what this is ALL about..in 2009-2010 during the Swine flu which killed THOUSANDS of Americans, the stock market did not suffer


7 posted on 03/03/2020 11:44:40 AM PST by Sarah Barracuda
[ Post Reply | Private Reply | To 3 | View Replies]

To: Red Badger
That should have driven the market up................

Except that it's a signal that the Fed is nervous.

8 posted on 03/03/2020 11:45:37 AM PST by Bubba Ho-Tep ("The rat always knows when he's in with weasels."--Tom Waits)
[ Post Reply | Private Reply | To 2 | View Replies]

To: BradtotheBone

Predictable. The market will be a roller coaster until this virus fizzles out.


9 posted on 03/03/2020 11:45:42 AM PST by DivineMomentsOfTruth ("There is but one straight course, ad that is to seek truth and pursue it steadily." -GW)
[ Post Reply | Private Reply | To 1 | View Replies]

To: BradtotheBone

The rate cute seems to have spooked the market rather than reassuring it. Or maybe this would have happened anyway.


10 posted on 03/03/2020 11:46:06 AM PST by Yardstick
[ Post Reply | Private Reply | To 1 | View Replies]

To: BradtotheBone

England and Germany markets are up, go figure. Too many Americans are easy to heard into panic by the msm, just look as several here on FR. Six months from now, the markets will be fully recovered and sanity will return.


11 posted on 03/03/2020 11:46:20 AM PST by JoSixChip (I'm an American Nationalist)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Sarah Barracuda

Swin Flu didn’t bork the supply chain from China. Blame globalism.


12 posted on 03/03/2020 11:46:24 AM PST by TarasBulbous
[ Post Reply | Private Reply | To 7 | View Replies]

To: BradtotheBone
When the Fed Funds Rate is at 1.75%, any cut will be inconsequential at best and a signal of panic at worst.

A Fed rate cut at this point is like asking an anorexic person to lose weight.

13 posted on 03/03/2020 11:46:35 AM PST by Alberta's Child ("Oh, but it's hard to live by the rules; I never could and still never do.")
[ Post Reply | Private Reply | To 1 | View Replies]

To: BradtotheBone
Hedge fund traders auto trading based on models.
14 posted on 03/03/2020 11:49:17 AM PST by ncalburt (Gop DC Globalists)
[ Post Reply | Private Reply | To 1 | View Replies]

To: BradtotheBone
Hedge fund traders auto trading based on models.
15 posted on 03/03/2020 11:49:19 AM PST by ncalburt (Gop DC Globalists)
[ Post Reply | Private Reply | To 1 | View Replies]

To: BradtotheBone

I think the fed tanked the market. By doing this during the trading day, which was very unusual, they made everyone scared the fed must know something we don’t. Also, a lot of the market is controlled by software algorithms. A sudden rate drop during trading triggered automatic selloffs.

The fed should know better they either bungled this, or did it on purpose.


16 posted on 03/03/2020 11:49:36 AM PST by Williams (Stop Tolerating The Intolerant)
[ Post Reply | Private Reply | To 1 | View Replies]

To: AdmSmith; AnonymousConservative; Arthur Wildfire! March; Berosus; Bockscar; cardinal4; ColdOne; ...
And now you know why the Fed did it.

17 posted on 03/03/2020 11:50:37 AM PST by SunkenCiv (Imagine an imaginary menagerie manager imagining managing an imaginary menagerie.)
[ Post Reply | Private Reply | View Replies]

To: JoSixChip

This always happens.. market shoots up and people start taking profits.. then buy again on another dip. Manipulators.


18 posted on 03/03/2020 11:51:43 AM PST by DivineMomentsOfTruth ("There is but one straight course, ad that is to seek truth and pursue it steadily." -GW)
[ Post Reply | Private Reply | To 11 | View Replies]

To: BradtotheBone

The only defense of the Fed is that they are acting for the whole economy, not just the markets. But certainly the economy could have waited 6 hours until after the trading day.


19 posted on 03/03/2020 11:51:47 AM PST by Williams (Stop Tolerating The Intolerant)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Sarah Barracuda
in 2009-2010 during the Swine flu which killed THOUSANDS of Americans, the stock market did not suffer

The stock market had already crashed at that point after the Financial Crisis. There wasn't room for it to go down.

20 posted on 03/03/2020 11:52:09 AM PST by Bubba Ho-Tep ("The rat always knows when he's in with weasels."--Tom Waits)
[ Post Reply | Private Reply | To 7 | View Replies]


Navigation: use the links below to view more comments.
first 1-2021-4041-6061 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson