U.S. stocks fail to return to life by Fed rate cut

world economy

Written by: Zhang Zijie

2020-03-04 05:01

After the US stocks experienced a sharp rebound on the "Great Miracle Day" on March 2nd, the trading on the 3rd failed to maintain an uptrend. Even if the Federal Reserve announced an emergency interest rate cut of half a percent in response to the new pneumonia epidemic, stimulating the three major indexes to rise, it was unsustainable after that, and iteratively performed repeatedly, and eventually closed down.

U.S. stocks were stimulated by the Fed ’s sudden interest rate cut in the early part of the market opening on March 3. The three major indexes once rose. Unfortunately, a number of Wall Street stock traders failed to laugh to the end. (Reuters)

The Dow once rose by nearly 400 points, but then turned around and fell. After midday, the decline in the trading hours hovered between 500 and 900 points. The final closing price was 25913.41 points, down 789.91 points, a drop of 2.96%.

The NASDAQ index closed at 8864.09 points, down 268.07 points, or a decrease of 2.99%.

The S & P 500 closed at 3003.07, down 87.16 points, or 2.82%.

Federal Reserve Chairman Jerome Powell said after the interest rate cut was announced that the Fed considered the economic outlook to be at risk and therefore took action to cut interest rates.

Forex trading agency Caxton Fx believes that the Fed is under pressure to cut interest rates again. If the stock market still ends with a decline, it may cause a "massacre".

Before the trading on the 2nd, the US stock market had fallen for several consecutive trading days. Some investors believe that without the support of the central bank's strong policy measures, US stocks' upward trend on the 2nd will be difficult to continue. In addition, investors are also skeptical that the continuous downward trend in the US stock market over the past six days has not ended.

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