Wall Street is down, the Fed has failed to soothe fears of coronavirus

US, WASHINGTON (ORDO NEWS) — US stocks are falling on Monday amid restrictive measures in the new states of the United States, despite optimism about the unprecedented easing of monetary policy by the Federal Reserve System (FRS).

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.

This news led to a short-term increase in futures for US indices by more than 3%, but the increasing death toll from coronavirus and signals about corporate sector problems returned the indices back to the red zone.

“Such measures alone will not do anything with the virus, and this is a big problem. This will help, but we still need budgetary incentives, and we need a lot of them. We need to target people who are really hurt, ”said Scott Brown, senior economist at Raymond James.

Investors hoped that the US Senate would approve incentive measures to mitigate the effects of a coronavirus outbreak worth more than $ 1 trillion, but Democrats and Republicans have not yet been able to come to an agreement.

Goldman Sachs expects a 1% decline in global GDP in 2020, and it will be a stronger reduction than after the 2008 financial crisis.

By 18:33 Moscow time, the Dow Jones Industrial Average index fell by 3.83% to 18.439.80 points, the S&P 500 – by 3.68% to 2.220.04 points, the Nasdaq Composite – by 2.40% to 6.714.39 points.

Boeing was the growth leader among the Dow companies after Goldman Sachs analysts upgraded the recommendations for the company to “buy.” But then the company’s shares moved to a decline of 0.5%.

Danaher Corp shares rose 0.7% after the company’s division received regulatory approval for the first rapid coronavirus test.

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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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