- The Dow Jones fell 2, 06 points on Thursday despite a historic intervention from the Federal Reserve.
- Pledging more than $ 1 trillion in repo interventions over the next few weeks, Jerome Powell is pulling out all the stops to fight the coronavirus.
- Dow bulls failed to take the bait, and the stock market quickly reversed most of its sharp gains.
The Dow Jones is suffering a grisly meltdown , and not even a historic intervention from the Federal Reserve was enough to stop the stock market’s bleeding.
Barring a last-minute recovery, the Dow could record its worst daily percentage loss since October – when it fell 25 % on “Black Monday” and then 8. 05% one week later.
Dow Jones Flirts With Ugliest Plunge in (Years)
European travel to the US is set to be suspended , it was unsurprising to see a 5. % slide in crude oil, but WTI is still holding above $ per barrel.
Digital asset bitcoin had a miserable day, crashing (% to $ 6,
. While it is not clear what would drive this weakness, it seems possible that much like investors in gold, the need for cash could be driving liquidations in BTC / USD.
Fed Makes $ 1.5 Trillion Effort to Slow the Stock Market Crash
The Federal Reserve is making a desperate attempt to rescue the flailing stock market. The U.S. central bank announced that it would pump trillions of dollars of liquidity into financial markets over the next few weeks.
In an explanation for this jaw-dropping amount of stimulus, (the New York Fed gave the following statement :
These changes are being made to address highly unusual disruptions in Treasury financing markets associated with the coronavirus outbreak.
While this briefly lifted the Dow off its lows , the sharp gains were erased as bulls questioned the Fed’s ability to shield the economy from a demand shock as enormous as the coronavirus.
ECB Policy Mistake Accentuates Travel Ban Chaos