Stock market news
A very volatile day for US stocks today. The US stock market is declining, as all major US stock market indices fall more than 2%. As of 2:58 PM, Tuesday, March 3, 2020, Eastern Time (ET) this is the latest stock market update:
S&P 500: 3,010.13,-80.10(-2.59%)
Dow 30: 25,983.36,-719.96(-2.70%)
Russell 2000: 1,478.53,-39.96(-2.63%)
Stock market data: Yahoo Finance
The US stock market is plummeting today due to the unexpected Fed rate cut of 50 basis points or 0.5%. It is a huge and sudden intrest rate cut that can be interpreted as follows:
The Fed is very worried about the latest coronavirus developments and wants to support the economy. If the economy is now in danger of any recessio it is too early for that. But an economic slowdown is having now a lot of probabilities for the US economy and the global economy. The Fed followed the Reserve bank of Australia cutting interest rates. may be soon more central banks follow these examples and cut their key interest rates as well. But today the bold move by Fed says that the economy is in trouble, and so to preven things from getting worse cheaper money is now available. This worried investors, and a selloff is under way.