Wall Street tumbles after Fed surprise rate cut
S E E D E D C O N T E N T
Wall Street tumbles after Fed surprise rate cut
March 3 (Reuters) - Wall Street tumbled in a volatile session on Tuesday after the Federal Reserve surprised investors with a half percentage-point cut in interest rates, amplifying fears about the magnitude of the coronavirus' impact on the economy.
All three major U.S. stock market indexes dropped more than 3% after the Fed's first emergency rate cut since the 2008 financial crisis.
The rate reduction underscored the Fed's concern about the coronavirus that has spread around the world after emerging late last year in China. It came two weeks ahead of a scheduled policy meeting, where traders had fully priced in a 50 basis point cut.
Stocks had initially jumped more than 1%, but then dropped as traders worried whether pumping more money into financial markets would address the central problem - a drop in business activity as workers and consumers stay home.
"The rate cut underscores the magnitude of the problem that the global economy is facing," said Peter Kenny, founder of Kenny's Commentary LLC and Strategic Board Solutions LLC in New York.
"Normally, markets would welcome a rate cut, and they were hoping for it. Now that we've got it, the question is, what's next?"
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the basic idea seems to be
"why did they cut the interest rate?" "the corona virus must be worse than they are saying"
It was a stupid panicked move so fat ass could say the economy is still doing well during his anti american rallies.
Because suddenly today, for the first time ever, the Fed has decided it wants to support the Trump administration???
freaked everybody out, did it?
Trump wanted a bigger cut, he's not happy either. He said they didn't do enough.
Fed cuts aren't going to make a difference to the stock market if people stop traveling, eating out, shopping, and such.
Market is down 800 pts on a day it was supposed to continue rallying
Yes with the cut one would have thought that it would at least break even.
I'm no financial expert, but how would a rate cut impact the current crisis? Not everything is about interest rates.