Stocks continue to fall amid coronavirus panic, despite the Fed cutting rates to 0% and additionally agreeing to beginning a period of quantitative easing.
COVID-19 Cases Going Up, Stocks Going Down
Despite the Federal Reserve cutting interest rates down to zero, as well as announcing a $700 billion quantitative easing program, the stock markets aren’t recovering, in fact, they keep on falling as coronavirus cases keep growing in number globally, with more than half of all cases and deaths being outside of mainland China.
All three major indexes – the S&P 500, Nasdaq and Dow Jones fell more than 8%, hitting limit downs and causing a halt to trading after weeks of drops and swings in the market. Individually, the Dow plummeted 10.2%, the S&P 500 – 9.7% and Nasdaq crashed 8.4%, marking the worst drops since 1987.
In addition, the Financial Services Forum announced that all eight members will be suspending buybacks through the end of Q2, as all suffer major losses from the coronavirus-controlled market.
As more and more events are getting canceled, large gatherings banned, as well as bars, restaurants, gyms, etc, getting closed down in an effort to contain the spread of the novel COVID-19, the virus isn’t calming down and the instability of the stock market, the economy’s in for a long ride and bad fall.