Wall Street recoils after massive coronavirus rescue bill trips up a second time; Dow sinks
Source: Washington Post
An unprecedented blank check from the Federal Reserve and the prospect of a $1.8 trillion stimulus package from Congress failed to slow a two-week stock purge as investors grasped for signs that progress is being made against the coronavirus.
Fresh off Wall Street’s worst week since the 2008 financial crisis, U.S. markets continued to skid Monday after the Senate failed for a second time to advance a $1.8 trillion coronavirus rescue package, even after the Federal Reserve announced unlimited bond purchases in an unprecedented move to lift the U.S. economy.
The Dow Jones industrial average and the Standard & Poor’s 500 index were plumbing lows not seen in years. The Dow closed down nearly 600 points, or 3 percent. The Dow is more than 35 percent off its all-time high of Feb. 12, 2020. The broad S&P 500 sank 3 percent and the tech-heavy Nasdaq was close to flat. The medical picture is getting worse, as New York state sees an exponential increase in reported coronavirus infections and as deaths mount around the globe.
“The last two weeks the market has been looking for some sign the virus is slowing, or that we have effective treatments for those infected or that there may be a vaccine,” said Randy Frederick, vice president of trading and derivatives at the Schwab Center for Financial Research. “This is a medical issue and we are trying to solve it with financial measures. If we are looking for a rebound, the market needs some positive health news, and they don’t see it yet.”
Read more: https://www.washingtonpost.com/business/2020/03/23/stocks-markets-today-coronavirus/
Full headline: Wall Street recoils after massive coronavirus rescue bill trips up a second time; Dow sinks nearly 600 points
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