US stock market futures turn positive after the Fed announced new measures to support the economy
March 23, 2020
US stock market futures erased their losses earlier today, March 23, 2020, after a press release by the Fed. In the press release titled ” Federal Reserve announces extensive new measures to support the economy” some of the measures to support the economy are:
- Support for critical market functioning. The Federal Open Market Committee (FOMC) will purchase Treasury securities and agency mortgage-backed securities in the amounts needed to support smooth market functioning and effective transmission of monetary policy to broader financial conditions and the economy. The FOMC had previously announced it would purchase at least $500 billion of Treasury securities and at least $200 billion of mortgage-backed securities
- Supporting the flow of credit to employers, consumers, and businesses by establishing new programs that, taken together, will provide up to $300 billion in new financing.
- Establishment of two facilities to support credit to large employers – the Primary Market Corporate Credit Facility (PMCCF) for new bond and loan issuance and the Secondary Market Corporate Credit Facility (SMCCF) to provide liquidity for outstanding corporate bonds.
At 9:09 AM, Monday, March 23, 2020, Eastern Time (ET) US stock market futures rise:
S&P Futures: 2,329.00,+40.50(+1.77%)
Dow Futures: 19,366.00,+326.00(+1.71%)
Nasdaq Futures: 7,134.00,+165.00(+2.37%)
Stock market data: Yahoo Finance