Posted on 03/03/2020 2:02:27 PM PST by Mariner
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 closed 785.91 points lower, or nearly 3%, to 25,917.41; it rose 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 fell 2.8% to 3,003.37 while the Nasdaq Composite pulled back 3% to 8,684.09.
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 2.9% to settle at $1,644.40 per ounce.
(Excerpt) Read more at cnbc.com ...
You mean I have to get a mortgage now?
It was real stupid move by the Fed. This is not a financial crisis. It just showed the guberment has no idea of how to handle this mess which made more people nervous.
My first Mortgage was 10%, but with low rates comes Higher Prices
Send me a pm with that link please.
Way better than what I saw this morning.
Seems like the market basically interpreted this as the Fed saying something along the lines of “yep..the world economy is screwed. We’re playing our very best card to do what we can to help mitigate the disaster to come..”. And, the market reacted the way one would assume it would when the Fed is waving the big, white flag.
DW and I started early retirement in 2019, and this looks so far like a once in a lifetime “black swan” that’s going to hit hard. Could not be a worse time..
I’d really like for things to get back to “normal” sometime very soon. We didn’t (and couldn’t! have) planned for anything like this.
CNBC celebrating. The market had it’s biggest increase ever yesterday. The Fed should have done nothing. The move looked like panic and sent the market down 700 points.
I’m in the process of buying a house.
I was quoted 2.75% for a 30 yr VA loan today.
No points.
“...DW and I...”
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Who/what is a DW?
(curious)
I’m curious - While I have no doubts the Coronavirus scare (as irrational as it is) will impact SHORT-TERM income and sales, but it simply pushes the sales and demand forward a bit. Folks are still going to want their new Samsung Galaxy whatever, or their new TV, or .... Sure, they might wait a bit to buy.
And yes - some supply issues are likely to come about with Asia being semi-shut off.
But long-term, I don’t understand what the panic is about. Anyone in a panic right now and selling off, is likely too nervous to be playing stocks anyway. What this IS providing - is an opportunity for investors to buy some stocks at a temporary low price. SOMEBODY is going to make some serious bank from this “crisis” (and not just pharmesuitical companies).
DW
Dead Weight.
But usually Darling Wife.
bought in Friday sold Monday and bought back in today...just minor call options on SPY, QQQ, and AAPL a month or so out, but paying off so far. [didnt rebuy Apple today].
China - the gift that just keeps on giving...
WOW...I gotta look at a refi.
Thanks
yep, the market was doing great today until the cut, then it collapsed
The travel industry world-wide, which is a big one when you consider both tourism and business travel, is going to take a massive hit. Even if it is only a few months, it’s hard to recover when the revenue has dried up for that long. Many companies cannot survive being shut-off for a couple of months.
One of the things about this that strike you is just how many people today - tens of thousands - travel internationally on any given day. Domestic travel is far greater. That’s a lot of economic activity that could stop dead in its tracks.
” DW = Darling Wife “
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I have seen people refer to DH...
I always thought it was designated hitter.
I hate acronyms.
Who cares?
But long-term, I don’t understand what the panic is about.
___________________________________________________
If your retirement plan, a 401k that you plan on using in 4 years when you retire, drops 25% in value - you panic.
This I say even after suffering far less financial disasters known as 9/11 and the 2008 Recession.
It was years later that the DJIA, NYSE, and other indices recovered after 2008. How long do you think it will be before we will reach 2019 levels again?
“I hate acronyms.”
Says someone whose screen name contains an acronym.
(lol)
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