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

Dow futures plunge 800 points after Fed surprises markets and cuts rate to zero


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

By Javier Manning

Javier has been in the field of content writing for almost 8 Years as he hails from the Biotechnology background. The edifying articles portray her craving towards language. His keen hobby of reading technological innovations related books or articles has sown the seed of being a well-versed editor with the current scenario of numerous industry verticals. He is one of the valuable assets to this publication. The Industry News Press has awarded him with a senior editors post based on his skillful performance to date.