After cutting interest rates to near zero and offering to purchase more Treasury bonds and mortgage-backed securities last week, the central bank now made a decision to lend against student loans and credit card loans as well as buy bonds of larger employers.
March 23 (Reuters) - Wall Street slipped on Monday as the still rapidly spreading coronavirus forced more USA states into lockdown, eclipsing optimism from an unprecedented round of policy easing by the Federal Reserve.
With the addition of Maryland, Indiana, Michigan and MA, 13 out of 50 U.S. states have imposed restrictions on people's movements to curtail the virus, putting the country on a track similar to those of the most devastated European countries, such as Italy and Spain.
"What the Fed did is important because it does help in the credit markets". Many analysts are projecting the United States economy to shrink faster next quarter than it did in any quarter during the Great Recession. "But it's not enough from an equity market perspective", said Willie Delwiche, investment strategist at Robert W. Baird in Milwaukee.
The economic stimulus package, which could send direct payments to most Americans, and throw a lifeline to small businesses as well as hard-hit industries by the virus, has been stalled for the second day in a row. A rush for safe-haven assets like government bonds caused US Treasury yields to fall yesterday.
The Dow shed another 3 percent to close at 18,591.93, its lowest reading since November 2016.Читайте также: BC COVID-19 cases increases; another death
The Nasdaq fell 18.85 points, or 0.3%, to 6,860.67.
Boeing was the biggest gainer on the Dow, rising 6.1%, as shareholders received an unusual piece of good news from Goldman Sachs upgrading its rating on the planemaker to "buy", expecting the company to recover from its recent woes.
Volume on USA exchanges was 15.7 billion shares, just shy of the 15.8 billion-share average for the full session over the last 20 trading days.
"We've known that the magnitude of help needed has been massive and growing for days now", said Mark Hamrick, senior economic analyst for Bankrate. "Once the market sees that, I think the market will rebound considerably". Before trading opened, futures for the S&P 500 swung from a loss of 5% to a gain following the Fed's announcement, a microcosm of the extreme volatility dominating the market in recent weeks.
The S&P 500 posted no new 52-week highs and 224 new lows; the Nasdaq Composite recorded two new highs and 525 new lows.При любом использовании материалов сайта и дочерних проектов, гиперссылка на обязательна.
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