Fox Business correspondent Edward Lawrence discusses the fed’s decision to lower interest rates amid the coronavirus pandemic.
U.S. equity markets plunged Monday after the Federal Reserve took emergency action to combat the economic harm caused by the new coronavirus outbreak.
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The Dow Jones Industrial Average fell by more than 2,800 points, or 12 percent, at its worst levels while the S&P 500 and Nasdaq Composite were down 10.6 percent and 11.5 percent, respectively. Trading was ]for 15 minutes shortly after the opening bell due to the S&P 500’s decline of more than 7 percent.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 20846.41 | -2,339.21 | -10.09% |
| SP500 | S&P 500 | 2431.48 | -279.54 | -10.31% |
| I:COMP | NASDAQ COMPOSITE INDEX | 7073.43806 | -801.44 | -10.18% |
The sharp selloff comes after the Fed, at an emergency meeting on Sunday evening, cut its benchmark interest rate by 100 basis points to near zero and announced a $700 billion asset purchase program. The Fed’s action was part of a coordinated effort by central banks around the world.
“The coronavirus outbreak has harmed communities and disrupted economic activity in many countries, including the United States,” the Federal Open Market Committee said in a statement. “The Federal Reserve is prepared to use its full range of tools to support the flow of credit to households and businesses.”
HOW LOW CORONAVIRUS-LED STOCK MARKET SELLOFF COULD GO: GOLDMAN SACHS
Looking at stocks, airlines remained at the center of the storm after United Airlines said its March revenue is expected to be $1.5 billion less than a year ago and that it would reduce flight capacity by 50 percent in April and May.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| UAL | UNITED AIRLINES HLDG. | 32.64 | -9.00 | -21.61% |
| DAL | DELTA AIR LINES INC. | 31.98 | -6.38 | -16.64% |
| AAL | AMERICAN AIRLINES GROUP INC. | 12.23 | -2.08 | -14.50% |
Casino operators were sharply lower after MGM Resorts and Wynn Resorts suspended operations at their Las Vegas casinos.
Other travel-related stocks, including cruise operators and online travel-booking companies, were also under pressure.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| MGM | MGM RESORTS INTERNATIONAL | 13.16 | -2.28 | -14.77% |
| WYNN | WYNN RESORTS LIMITED | 62.13 | -10.39 | -14.33% |
| CCL | CARNIVAL CORP. | 15.58 | -2.00 | -11.38% |
| NCLH | NORWEGIAN CRUISE LINE HOLDINGS LTD. | 11.05 | -0.05 | -0.45% |
| EXPE | EXPEDIA GROUP, INC. | 61.19 | -8.44 | -12.13% |
Apple shares tumbled after the tech giant announced the closure of all 468 of its retail stores outside of Greater China until March 27. On Friday, the company reopened all 52 of its Greater China stores.
Nike, Abercrombie & Fitch and Urban Outfitters also announced the closing of all of their retail stores while Starbucks said it would shut some locations.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AAPL | APPLE INC. | 250.27 | -27.70 | -9.97% |
| NKE | NIKE INC. | 66.95 | -8.63 | -11.42% |
| ANF | ABERCROMBIE | 9.51 | -1.77 | -15.74% |
| URBN | URBAN OUTFITTERS INC. | 13.76 | -1.93 | -12.28% |
| SBUX | STARBUCKS CORPORATION | 60.75 | -9.17 | -13.12% |
Elsewhere, energy stocks plunged as West Texas Intermediate crude oil cratered 8.6 percent to $29.35 per barrel.
Miners were also weaker as copper sank 4.5 percent to $2.3545 per pound, its lowest since the 2016 election, and gold slid 3.9 percent to $1,460 an ounce.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| XOM | EXXON MOBIL CORPORATION | 33.64 | -4.48 | -11.75% |
| CVX | CHEVRON CORP. | 72.91 | -10.51 | -12.60% |
| CLR | CONTINENTAL RESOURCES | 8.22 | -1.60 | -16.26% |
| NEM | NEWMONT GOLDCORP CORPORATION | 34.99 | -4.51 | -11.42% |
| GOLD | BARRICK GOLD CORP. | 13.3 | -2.37 | -15.12% |
Meanwhile, banks fell as heavy buying across the U.S. Treasury complex flattened the yield curve. The benchmark 10-year yield was down 19.3 basis points at 0.761 percent while the 2-year yield was lower by 11.6 basis points at 0.376 percent.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| JPM | JP MORGAN CHASE & CO. | 89.12 | -14.79 | -14.23% |
| BAC | BANK OF AMERICA CORP. | 20.58 | -3.58 | -14.82% |
| WFC | WELLS FARGO & COMPANY | 27.27 | -3.62 | -11.72% |
In Europe, France’s CAC led the decline, falling 9.3 percent, after the government shut restaurants and bars. Germany’s DAX and France’s CAC were lower by 8.1 percent and 6.8 percent, respectively.
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Overnight, markets slumped across Asia with Hong Kong’s Hang Seng shedding 4 percent, China’s Shanghai Composite sliding 3.4 percent and Japan’s Nikkei losing 2.5 percent.
