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Major equity indexes in the US gained traction and rose decisively after the Federal Reserve’s emergency 50 basis points rate cut. However, the mood shifted, once again, during FOMC Chairman Powell’s press conference and Wall Street’s three main indexes fell sharply.

As of writing, the Dow Jones Industrial Average and the S&P 500 were down 1.4% and 1.15%, respectively, while the Nasdaq Composite was erasing 0.9% on the day.

Powell refrained from mentioning a possible fiscal policy response to the potential negative impact of the coronavirus outbreak on the US economy and noted that the effects haven’t been reflected upon the data yet. “We are hearing the effects are at an early stage but concerns are being voiced,” Powell said. 

In the meantime, the 10-year US Treasury bond yield is down 12.1% on the day at fresh all-time lows near 1.03%. Moreover, the rate-sensitive S&P 500 Financials Index is down 3% as the worst-performing major S&P 500 sector.