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Dow Jones Industrial Average plunges as Fed cuts rates

U.S. stocks were pummeled Monday after the coronavirus pandemic fueled anxiety that the global economy was headed for a recession as countries continue to shut down global business and travel.

The Dow Jones Industrial Average collapsed 2,999  points, or 12.9%, to close at 20,188.52 — its second worst percentage loss in history behind the “Black Monday” stock market crash in 1987. The benchmark Standard & Poor’s 500 index plunged 12% to finish at 2,386.13. The broad index briefly triggered an automatic shock absorber for the third time in six sessions when it fell more than 7% shortly after the opening bell. The technology-heavy Nasdaq Composite dropped 12% to end at 6,904.59, one of its worst days ever. 

The turbulence came after the Federal Reserve took emergency action late Sunday to cushion the economy from the deadly virus. The central bank cut interest rates and launched a fresh round of crisis-era bond purchases.

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