Posted on 03/15/2020 7:39:23 PM PDT by lasereye
U.S. stock-index futures fell sharply Sunday night following the Federal Reserve’s emergency decision to slash interest rates nearly to zero and buy $700 billion in Treasurys and mortgage-backed securities in an effort to quell financial market turmoil sparked by the global coronavirus pandemic.
“The Fed has thrown most its weight behind this move, offering almost everything it has to give, which raises the inevitable question — if this doesn’t work, what will?” said Seema Shah, chief strategist at Principal Global Investors. “The immediate negative reaction suggests markets are already worrying about that, and governments likely need to accelerate their fiscal action.”
Stock-index futures opened sharply lower Sunday night, quickly extending losses to fall the daily 5% limit. Futures on the Dow Jones Industrial Average YM00, -4.558% were 1,042 points lower at 21,798, while S&P 500 futures ES00, -4.784% dropped 128.40 points to 2,555.50.
Treasury prices rose, pushing down yields. The yield on the 10-year Treasury note TMUBMUSD10Y, 0.664% fell 30.5 basis points to 0.644%, FactSet data show.
The U.S. dollar weakened against major rivals after the Fed’s monetary actions. Also, as part of Sunday’s action, the Fed and five other major central banks announced they were activating swap lines in an effort to smooth dollar shortages caused by a global scramble for the currency last week.
Some observers argued that while the Fed’s moves were justified, the timing of the announcement ahead of the open of Asian markets late Sunday and in lieu of a policy meeting that had been sent for this week appeared desperate.
“When you have folks in power acting in a very panicky way, doing off-scheduled meetings and throwing everything they can at the situation, that doesn’t send a very reassuring signal to the general population.” said Max Gokhman at Pacific Life Fund Advisors.
(Excerpt) Read more at marketwatch.com ...
We’re all gonna die! Communism must be implemented immediately, and Trump must go!
next step closing market...
Panic begets panic. Unless the cycle is broken, the economy will be trashed. Until, I am afraid, President-Elect Biden reassures the nation.
Should be done.
The Fed does not learn from history; Japan tried this trick several years ago ....
why?
Biden wont re-asure anyone.
What more could they possibly want?
So it doesnt go bellow 20,000.
Stop collecting payroll taxes. Extend the April 15th deadline to April 15 2021!
We are in some serious Deep Trouble
Some big people are wanting market closed to prevent broker failures with unmet margin calls as the circuit breakers create havoc
Margin calls galore...I have an idiot stalker who tries to claim their are no margin calls
Yes, there are.
Good news..after the margin calls in gold last friday...it isn’t getting hammered tonight
Why? It’s time to pay the deficit/fiat currency piper instead of putting more debt on the backs of our children, their children, and their children’s children...while stealing their future.
Humanity survived harder times than this, time to take our medicine and pray for forgiveness.
I got a refund this year so that doesn’t help me.
Maybe something like comprehensive testing?
The markets are a symptom, it’s stupid to treat the symptoms instead of the cause.
The cause is that no one knows the big picture and few know what would happen if they came down with it as far as the cost of treatment and impact on income.
Anything much short of ‘everybody in the country tested in the next 48 hours’, means another week of market free fall, hellow DHJIA 10K
“‘if this doesn’t work, what will?’”
As long as our economics ‘experts’ think that you can kill off a virus that is bringing the world to its knees by ‘injecting liquidity’ (or some crap like that), then yes, nothing will work.
It’s generally better to fight a REAL ISSUE (the shutdown of China, Korea, and now Europe) as a read issue, rather than ‘injecting liquidity’ (or some crap like that) with the thought that it’s just a mass panic, for no rational reason.
Based on what they’re saying in the article, the sudden rate cut is what’s panicking the market.
There’s actually quite a few positives for the economy right now. The return to ultra low interest rates and cheap energy, although some people think cheap energy is bad.
The market was way up on friday.
Now the rug is pulled out. Makes no sense.
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