Stocks fall after Federal Reserve cuts interest rates

Twitter suspends travel as companies grapple with coronavirus

[ad_1]

The Dow fell nearly 800 points Tuesday and 10-year Treasury yields dipped below 1% for the first time ever in a day of wild swings triggered by a surprise Federal Reserve rate cut and the latest news of the coronavirus’s spread.

After the Fed lowered its key interest rate by half a percentage point earlier in the day, the Dow Jones industrial average surged more than 400 points before tumbling as much as 900 points. The rate cut was aimed at supporting the economy and financial markets but may have had the opposite effect, analysts say.

“It was perhaps a sign the Fed is concerned about the economy,” says Ryan Detrick, senior market strategist for LPL Financial. “Maybe things are a little worse than we thought.”

The central bank may have been better off trimming rates by just a quarter percentage point and then cutting by another quarter-point at its March 17-18 meeting, says Nick Reece, senior analyst at Merk Investments.

[ad_2]

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.