US stocks crash as Fed action fails to calm markets
16 Mar, 2020 13:39 / Updated 25 seconds ago
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Trading on Wall Street has been halted on Monday after stocks had plunged immediately after the opening bell, despite the promise by the US Federal Reserve to provide more stimulus. After a 15-minute pause, trading was resumed.
The S&P 500 has plunged more than eight percent while he Dow crashed over nine percent due to a wave of panic selling. The Nasdaq Composite, comprising the biggest US tech companies, slid more than six percent to 7,392.73.
The sharp stock market fall has triggered the so-called 'circuit breaker' trading halt, which will last for 15 minutes.
Bank stocks are among the biggest losers, with JPMorgan and Morgan Stanley down at least 17 percent. Airline stocks are also crashing amid forecasts that many will be bankrupt by May.
The news of this Wall Street crash has driven European shares down further, with the London FTSE 100 index falling 8.4 percent to 4,904.60 points – its lowest since October 11.
France's CAC 40 has nosedived more than 11 percent to 3,646.08, while the German DAX dropped by more than 10 percent to 8,277.20
In response to the effects of the coronavirus on the global economy, US Federal Reserve announced on Sunday that it plans to cut rates to zero and launch a massive $700 billion quantitative easing program to add liquidity to the markets.
“The Fed blasted its monetary bazooka for sure,” Peter Boockvar, chief investment officer at Bleakley Advisory Group told CNBC. “This better work because I don’t know what they have left and no amount of money raining from the sky will cure this virus. Only time and medicine will.”
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