Press "Enter" to skip to content

Dow Jones futures plunge, halted for trading even as Fed cuts rates

U.S. stock futures plunged Monday at the start of another turbulent week after the Federal Reserve took emergency action to cushion the economy from the coronavirus pandemic that is shutting down global business and travel.

Futures for the Dow Jones Industrial Average plunged more than 1,000 points and benchmark S&P 500 index dropped nearly 5% —  triggering an automatic shock absorber — after the central bank cut interest rates and launched a fresh round of crisis-era bond purchases.

“Investors aren’t happy because these rate cuts won’t stimulate the economy in the near term. You can’t stimulate demand if everyone is stuck in their house,” says Shana Sissel, a senior portfolio manager at CLS Investments. “This isn’t a financial failure. This is a global pandemic that affects everyone across the globe. The quickest way to ramp everything back up is to provide them with a safety net in the meantime.”

Source link

Be First to Comment

Leave a Reply

Your email address will not be published. Required fields are marked *