Major US stock indexes slid on Monday, even after the Federal Reserve announced plans to further support economic activity amid the growing coronavirus threat.
The central bank’s new programs include unlimited bond purchases and facilities to keep consumers and small businesses afloat as the coronavirus drastically slows spending activity.
Traders remain uncertain following the Senate’s failure to pass a fiscal stimulus package.
Monday’s losses follow a limit-down trading halt for US equity futures on Sunday evening.
Watch major indices update live here.
Major US stock indexes slid on Monday, even after the Federal Reserve revealed plans to bolster the economy.
The Fed pledged to keep both Main Street and Wall Street afloat as the coronavirus hampers economic activity. The central bank lifted its bond-buying limit and created three facilities to strengthen lending to large employers and individual consumers.
The Monday open for US indexes followed sharp selling when futures trading commenced on Sunday evening. Those contracts triggered a limit down trading halt after the Senate failed to agree on a trillion-dollar fiscal stimulus package.
US futures erased losses and traded in positive territory briefly in the last hour of premarket trading, immediatley following the Fed announcement.
Here’s where the major US indices stood shortly after the 9:30 a.m. ET market open on Monday:
S&P 500: 2,233.71, down 3.1%
Dow Jones industrial average: 18,564.80, down 3.2% (609 points)
Nasdaq 100: 6,755.24, down 1.7%
Read more: GOLDMAN SACHS: Buy these 15 cheap, cash-rich stocks in order to dominate the market, even as we barrel towards recession
“While great uncertainty remains, it has become clear that our economy will face severe disruptions. Aggressive efforts must be taken across the public and private sectors to limit the losses to jobs and incomes and to promote a swift recovery once the disruptions …read more
Source:: Business Insider