- Dow Jones Industrial Average is down nearly 9% on Thursday.
- NY Fed introduces $1.5 trillion in new repo operations.
- S&P 500 Energy Index is erasing more than 10%.
Wall Street’s main indexes started the day sharply lower on Thursday and a level-one circuit breaker was triggered for the second time this week as the S&P 500 lost 7% minutes after the opening bell.
NY Fed fails to trigger a recovery
After the trading activity restarted following a 15-minute halt, US stock indexes failed to stage a rebound and continued to push lower. In a surprise announcement, the Federal Reserve Bank of New York decided to introduce $1.5 trillion in new repo operations until the end of the week but failed to improve the market mood.
The NY Fed said it will offer $500 billion in a three-month repo operation on Thursday and an additional $500 billion in one-month repo and $500 billion in three-month repo loans on Friday.
As of writing, the Dow Jones Industrial Average (DJIA), which lost as much as 9% earlier in the session, was down around 2,000 points, or 8%. Moreover, the S&P 500 and the Nasdaq Composite were erasing 7.05% and 6.4%, respectively.
Among the 11-major S&P 500 sectors, the Energy Index is down more than 10% and the Financials Index is losing 8.5%. In the DJIA, Boeing, IBM, Walt Disney, Nike and American Express shares are losing more than 10% as worst performers.
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