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Stocks - Wall Street off Lows, but Sea of Red Continues as Fed Steps in Again

Published 03/16/2020, 12:30 PM
Updated 03/16/2020, 12:33 PM
© Reuters.

By Yasin Ebrahim 

Investing.com – Wall Street moved off session lows on Monday as the Federal Reserve pumped more liquidity into the market just a day after slashing rates and reverting to its financial-crisis-era bond-buying program in an attempt to keep a lid on the economic damaged from the Covid-19 outbreak.  

The S&P 500 slipped 6.91%, the Nasdaq Composite lost 7.31% and the Dow Jones Industrial Average fell 7.8%, or 1,800 points, though had fallen by as many as 2,800 points at the lows.

The New York Fed said midday Monday it would conduct a $500 billion repo operation this afternoon in a bid to shore up short-term funding markets and avert a liquidity squeeze.

The move comes a day after the Fed slashed its benchmark interest rate by 100 bps to a range of 0% to 0.25%.

The U.S. central bank also offered a number of liquidity-boosting measures, including currency swaps, along with its central banking peers like the European Central Bank and the Bank of Canada, to make it easier for financial institutions to trade currencies and receive U.S. dollars.

The wave of stimulus, however, did little calm investor jitters over the coronavirus-led impact on the economy as the trading was halted earlier in the day after the broader market plunged more than 7%.

The selloff on Wall Street comes at a time when health authorities raised concerns about the lack of testing for the virus in some nations.

"We have not seen an urgent enough escalation in testing, isolation and contact tracing, which is the backbone of the response," the World Health Organization said.

In tech, meanwhile, Apple (NASDAQ:AAPL) fell more than 8% after the iPhone maker said it would close all of its stores outside of China for the next two weeks to contain the spread of the coronavirus and was hit with a record $1.2 billion by French antitrust authorities. Apple and two suppliers were found to have agreed not to compete on prices and distribution.

Latest comments

They MADE THE CRISIS, it was their lessez faire to allow the press to run amok, allow Wall Street to f'k the average investor, fake a crisis they are trying to fix with electronic money .. a..'holes! _ And Trumpet, the child-king running for the hills and blowing up the public resources, MAN-OH-MAN. THEY CREATED A SELF-FULFILLING PROPHECY. - OVER WHAT? NOT HAVING A VACCINE FOR A VIRUS that ki'lls less people than the COMMON FLU. Do those who voted for the child-king realize this? AMERICA NEEDS A PREZ WHO DOES NOT SHUFFLE MONEY TO THOSE WHO ALREADY HAVE WAY MORE THAN THEY NEED, AMERICA NEEDS A PREZ WHO BALANCES THE COUNTRY NOT TAKE FROM THE SMALL MAN AND GIVE TO THE BIG MAN INCLUDING HIMSELF. POTUS HAS BEEN LOOTING THE PUBLIC PURSE and now pays no interest expense no more for all the real estate possessions he has in his empire while the small man won't pay his rent no more and needs to foreclose only to be bought by the prez's corporations. Wake up Americans!
Recession
Stopshort selling for 4 weeks and markets will calm down
At least reinstate the uptick rule.
“Its like a flu”, epic. Once you have the problem at your own dorstep it feels different. Its more than just a demand problem, its also fear, a genuine concern among people to get infected and/or lose their jobs. Fed pouring money into the economy doesnt help to ease the concern of most people. Who cares if hedgefunds with their AI machines on steroids lose money. Time to get perspective.
Fed in panic. Trump beyond incompetent. Good luck America.
and people that actually know how to trade are making a boat load while other people are complaining...lol
well, just had to do what Koreans did. But Trump thought he was smarter the anyone. Obviously he isn't
Wow!! Another know it all with God-like knowledge. Where have you been. You should have contacted HHS and imparted your vast wisdom on them and this would have all gone away. Sure is a good thing you got your message out here though. We will all be better off for it.
The best way to protect everyone's capital, is by, " immediately stopping short selling " OR, " suspending trading globally for all the world's financial markets ".
Not a bad idea. This insanity and mass hysteria is totally irrational.
I wonder there is veiled reason for F.R all in QE. Maybe oil or airline industries much more serious than we predict now. Those money liquidity policy is not for virus aid. They know it, like me.
Once again the Federal government feeding the Markets GREED,The Fed Need to step in to help the small business and work with other countries on developing a VACCINE FOR COVID 19
all in vain....
ha,ha !! (Good One Luis 😁!!)
enough with this pumping liquidity into the markets, stimulate the economy and print billions for the people not these failing banks, this is nothing more than bank bailouts once again. this whole system is rigged against us. the fed is a disgrace with no regulation that needs reform. printing money into infinity and none of us gets a stimulus check that we highly deserve
Right on Damian Ciceri. We won't find out for a long time about all the repo billions that wall street firms lost and never repaid to the fed. Like during lehman's demise, billions and billions not repaid. They are trying to lose it in the quicksand. Nobody has time and the will to finance an investigation. It's same as prez Ferdinand Marcos in the Philipenes, Looting the public purse .. they can't take it to their graves but the GREED is driven by natural forces of parents wanting to provide for their kids. Trumpet has same lack of discipline
Tell WHO to shut up. They are just seeking monies .
Trump save us
Very stupid move to fire two last bullets. Everyone is scared and there is serious reason and the issue can not be solved by money. You cannot make stimulus for business if it has to be suspended for a few weeks. They had to let markets fall. And when people are not scared anymore, 2-3 days of free fall, they could make crucial comeback with bilions and rate cut
keep printing money, you solve nothing , nothing can save this market except vaccine
Ban all those computers that sell on headlines!!!
You didn't ask for a ban when it was all good news and the markets were high on cheap money!!
The fed are just puppets of trump with no real policy of understanding. They used all their ammunition during the fall instead of waiting for the market to stabilize and help restart the economy. Each time they do something they transmit panic and that they clueless. Trump just wants to see the market up and does all the mistakes that just hurt the economy. He always comes in the last 15 minutes of trade to try to  twit the market up so no one takes this seriously anymore. The economy in all the world is shutting down and there is nothing that can be done , only to save energy for the right time to help make the recovery faster.  All their steps now only help speculators make more money on the back of the american public with no real value to the economy
If rhe Fed would just STOP their intervention The Fed rates last week they didnt wait but 4 days until a Sunday which as we all know the markets were closed and cut to 0 They are spooking the market making it look as if they dont know what they are doing. There is no confidence in Jerome Powell. Mr President you must let the Central bank and Treasury take it from here.The tape will be getting painted red many more days to come unless they cease to act every couple of daysNote: We corrected prior mispellings. Sorry about double posting
spooking the markets and there not really changing it much. it's way to soon. they wasted all there bullets that would of been huuge boosters in 60 days 30 maybe at the least.
If rhe Fed wpuld just STOP their interventionThey Cut rates last week they didnt wait but 4 days until a Sunday which as qe all know the markets were closed and cut to 0They are spooking the market making it look as if they dont know what they are doing. There is no confidence in Jerome Powell and Mr President has to led the central bank and treasury take it from here.The tape will be getting painted red many more days to come unless they cease to act every couple of days
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