Dow Jones drops nearly 800 points on Tuesday

Dow Jones drops nearly 800 points on Tuesday

The surprise Fed move slashed its key interest rate by a half point to a range of 1.0-1.25, a bigger cut than usual.

On Monday, U.S. equities rallied massively, with the Dow up almost 1,300 points, its best one-day point gain in history. Asian stock markets were mostly higher Wednesday after Wall Street sank despite an emergency US interest cut aimed at defusing fears a virus outbreak might depress global economic activity.

Whereas the aftermath of Tremendous Tuesday has left the Democratic social gathering riven between its extra liberal and reasonable wings, traders considered final evening's outcomes as a win for enterprise and markets. Carnival shares fell 2.6 per cent, and Royal Caribbean shares dropped 1.2 per cent. It dropped more than 12 percent for the week.

Yields on long-dated US Treasuries fell to record lows as investors fled to bonds, whose prices move inversely to their yields. Earlier this week, it had never in history been below 1%. Start taking more decisive measures.

Even a better-than-expected report on wasn't enough to pull markets from the undertow. On Friday, investors also looked past data showing a robust pace of hiring in February, underscoring the panic around the potential end of the longest USA economic expansion on record.

"It's probably a trend toward more of the same in terms of the market and the regulatory and business environment", said Ablin.

At the heart of the drops is the fear of the unknown.

But the mood shifted in Tokyo by midday, as thoughts turned to what the Bank of Japan might be able to do to help counter the slowdown worsened by the outbreak of the new virus that causes a disease called COVID-19.

The growing understanding that the spread of infections - and resulting damage to the economy - may not slow anytime soon is pulling sharply on markets.

The wider S&P 500 was 4.6% higher. It started off with a 4.6% jump on Monday, then fell 2.8%, rose 4.2% and fell 3.4%. "So I'm of really heightened alert of the chance for a down market for this year". The 200 day EMA has held as resistance and it now looks like we are ready to go much further.

Markets have been on edge for two weeks, with the S&P 500 down 7.6% from its record on February 19, amid worries about how much economic damage the coronavirus will do.

U.S. stocks were in the green most of the day, but trading was hesitant in stretches, in the wake of news of the first confirmed case in NY city. "We agree with this point but think that central bankers will still want to do their part to support the economy".

Asian stock markets started Thursday off higher, riding the wave of optimism and hope that sent the S&P 500 soaring on Wednesday.

Fears about economic growth resurfaced on March 5 as the USA death toll rose to 11 and California reported the first fatality outside Washington state, a day after lawmakers approved an $8.3 billion bill to combat the outbreak. Biden's healthcare proposals are seen as more friendly to the industry than a pledge by Sanders' to scrap private health insurance. The S&P 500 has risen or fallen at least 2% for four consecutive session, the longest such stretch since August 2011, according to Dow Jones Market Data, when the European debt crisis rocked markets.

Ten-year notes last rose 9/32 in price to yield 0.9876%.

After about 20 minutes, the Dow Jones Industrial Average stood at 25,338.65, down 3.0 per cent or around 780 points.

It was at 0.95 percent on Wednesday morning.

Benchmark U.S. crude lost 88 cents to settle at $45.90 per barrel. Gold rallied. Oil fell to its weakest level in more than two years. Brent crude, the worldwide standard, dropped $4.72, or 9.4%, to $45.27. It climbed $2.23 to $51.90 per barrel in London.

Tokyo's Nikkei 225 advanced 0.2 per cent to 21,123.68 and the Kospi in Seoul rose 2.3 per cent to 2,060.09. The dollar index rose 0.25%, with the euro down 0.33% to $1.1134.

Costco Wholesale Corp shares fell 3.5% as it said it was struggling to keep up with demand for essentials, including disinfectants.

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