Wall Street closed in the red as Fed measures failed to reassure investors

US, WASHINGTON (ORDO NEWS) — US stock indices fell on Monday, as the new Federal Reserve measures failed to calm investor concerns about the rapidly spreading coronavirus.

After lowering interest rates to almost zero and increasing purchases of treasury bonds and mortgage-backed securities last week, the US Central Bank on Monday introduced a range of programs for large companies, households, and small businesses, citing the “huge difficulties” facing the economy for the coronavirus pandemic.

The United States has stepped up efforts to combat the spread of coronavirus: 13 out of 50 states have imposed restrictions on the movement of people.

These measures promise an almost complete cessation of economic activity and put pressure on US stocks, while a number of analysts are reviewing their growth forecasts.

“What the Fed has done is important because it really helps the credit markets. But this is not enough in terms of the stock market, said Willy Delviche of Robert W. Baird in Milwaukee. “What we need now is leadership in Congress to pass some kind of incentive bill, because what the Fed does removes some problems, but that’s not enough to solve what’s happening.”

Goldman Sachs expects developed economies to “drop sharply” in the second quarter, including a 24% drop in US economic activity. This is two and a half times more than the previous post-war anti-record.

The Dow Jones Industrial Average index fell by 3.04% to 18.591.93 points, the S&P 500 – by 2.93% to 2.237.4 points, the Nasdaq Composite – by 0.27% to 6.860.67 points.

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The article is written and prepared by our foreign editors from different countries around the world – material edited and published by Ordo News staff in our US newsroom press.

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