Wall Street, Wall Street Disappointed Over Stimulus | Finance Brokerage
0

Wall Street Disappointed Over Stimulus

Following Wall Street’s slight rebound, futures in the stock market are back in red. The fear among stock investors on COVID-19 pandemic and its effects on global economies continue despite stimulus offers from governments.

Dow (INDU) futures went further down more than 800 points or 3.9%. and S&P 500 (SPX) futures fell 3.7%. Moreover, Nasdaq (COMP) futures dropped 4.4%. Elsewhere, stock markets in Asia and Europe also declined.

The US and European governments have offered trillions of dollars to support their economies from the blows of the coronavirus. The outbreak has put millions of people unemployed and hurt many industries.

According to a Republican Senate source, US Treasury Secretary Steven Mnuchin is pushing for a $1 trillion economic stimulus. It is designed to prevent the unemployment rate from soaring to 20%.

Moreover, Germany, France, Spain, and the UK have also pledged $1.5 trillion of support.

Bob Michele, global head of fixed income at JP Morgan Asset Management, said volatility across markets created anxiety among investors. Worried investors are trying to gauge the responses of various healthcare, monetary and fiscal policy.

The NY Federal Reserve announced plans to pump in $1.5 trillion to fight these highly unusual disruptions on Wall Street.

Wall Street Buoyed By Continued Action to Calm the Markets

Asia Pacific stock trading had the same performance as Australia’s S&P/ASX 200 closed down at 6.4% and South Korea’s Kospi ended down at 4.9%.

Japan’s Nikkei 225 was down at 1.7%, China’s Shanghai Composite was down at 1.8% and Hong Kong’s Hang Seng Index went 4.2% lower.

More declines were seen in Europe’s STOXX 600 index at 3.3% and Germany’s DAX was off at 4.6%. Also, France’s CAC 40 lowered 3.6% while Britain’s FTSE 100 was 3.3% lower.

The Dow was up more than 1,000 points, or 5% while S&P 500 and Nasdaq both closed up around 6%.

The New York Federal Reserve tries to calm panicky financial markets. Not only did US stocks nosedived but the government bond market malfunctioned. The Treasuries should be the safest assets but liquidity dried up in the market causing panic on Wallstreet.

The NY Fed said it would offer $500 billion in a repo operation on Thursday and again the following day. In addition, it will offer another $500 billion as well as take other steps. This improved the mood on Wall Street and lifted US stocks a bit.

Comments Rating 0 (0 reviews)

Get the latest economy news, trading news, and Forex news on Finance Brokerage. Check out our comprehensive trading education and list of best Forex brokers list here. Subscribe now and receive FREE updates on the market today!

Leave a Reply

Sending

Subscribe to Our Newsletters

Have the best of Finance Brokerage News delivered directly to your mailbox. Subscribe now to receive the latest market news.