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 ...
Makes no sense.
That should have driven the market up................
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!
So the fed does this after the rebound? I have no confidence in this guy, none.
The market was up about 600 at one point.
The index funds are moving this market. Wild gyrations.
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??
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
Except that it's a signal that the Fed is nervous.
Predictable. The market will be a roller coaster until this virus fizzles out.
The rate cute seems to have spooked the market rather than reassuring it. Or maybe this would have happened anyway.
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.
Swin Flu didn’t bork the supply chain from China. Blame globalism.
A Fed rate cut at this point is like asking an anorexic person to lose weight.
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.
And now you know why the Fed did it.
This always happens.. market shoots up and people start taking profits.. then buy again on another dip. Manipulators.
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.
The stock market had already crashed at that point after the Financial Crisis. There wasn't room for it to go down.
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