Stock-market futures sink after emergency Fed rate cut — ‘if this doesn’t work, what will?’
DumbAss Doofus “beating up on the Fed Chair” has now cause the Fed to burn through our entire magazine box of bullets with interest rates now at Zero – EXACTLY when we need a full reload for the Inflation monster that is coming next!! What a fuckin’ DumbAss!! When the markets open today there may be FUD bigtime!!😳😵😠😡💩
Published: March 15, 2020 at 9:20 p.m. ET By William Watts and Sunny Oh
Reaction underlines desire for fiscal action: analysts
U.S. stock-index futures fell sharply Sunday night following the Federal Reserve’s emergency decision to slash interest rates nearly to zero and buy $700 billion in Treasurys and mortgage-backed securities in an effort to quell financial market turmoil sparked by the global coronavirus pandemic.
“The Fed has thrown most its weight behind this move, offering almost everything it has to give, which raises the inevitable question — if this doesn’t work, what will?” said Seema Shah, chief strategist at Principal Global Investors. “The immediate negative reaction suggests markets are already worrying about that, and governments likely need to accelerate their fiscal action.”
Stock-index futures opened sharply lower Sunday night, quickly extending losses to fall the daily 5% limit. Futures on the Dow Jones Industrial Average YM00, -4.558% were 1,042 points lower at 21,798, while S&P 500 futures ES00, -4.784% dropped 128.40 points to 2,555.50.
Treasury prices rose, pushing down yields. The yield on the 10-year Treasury note TMUBMUSD10Y, 0.760% fell 30.5 basis points to 0.644%, FactSet data show.
The U.S. dollar weakened against major rivals after the Fed’s monetary actions. Also, as part of Sunday’s action, the Fed and five other major central banks announced they were activating swap lines in an effort to smooth dollar shortages caused by a global scramble for the currency last week.