- FOMC Chairman Powell’s remarks trigger selloff in stocks.
- BlackRock shares post decisive gains despite dismal market mood.
Major equity indexes in the US are suffering heavy losses on Wednesday as investors realize that the Fed won’t be using negative interest rates to battle the recession.
As of writing, the Dow Jones Industrial Average and the S&P 500 are both losing around 2% on a daily basis and the Nasdaq Composite is down 1.8%.
Earlier in the day, FOMC Chairman Jerome Powell reminded markets that the last FOMC meeting minutes showed that all policymakers opposed negative rates. “The Fed intends to continue using tools it has already tried,” Powell added and said the evidence on negative rates was mixed.
S&P 500 top movers
After its top investor, PNC Financial Services, sold its 22% ownership stake, the global investment management company BlackRock (BLK) rose sharply on Wednesday. At the moment, the BLK is up 5.1% on the day at $477.67 as the top-gainer. On the other hand, cosmetic producer Coty Inc (COTY) and luxury fashion brand Tapestry (TOR) are down 14.5% and 9.5% as the worst performers.
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