Not even the Federal Reserve could rescue the U.S. stock market.
For the second straight day, the Fed announced that it will pump more than $1 trillion into the financial system to stop the bleeding.
The central bank says it will unleash these “big bazookas” as CNBC described it:
– $500 billion three-month operation.
– $500 billion one-month repo operation.
– $500 billion one- and three-month repo operations every week.
This is already in addition to the central bank’s $130 billion in repo action revealed on Wednesday.
The Fed will also broaden its Treasury purchases beyond just short-term notes.
The announcement provided temporary relief.
Before the news broke, the Dow Jones Industrial Average crashed more than 2,200 points. When the Fed made the announcement, the Dow slashed its losses in half. Soon after, the Dow deepened its losses and suffered the worst single-day plunge since 1987.
Here were the numbers at the closing bell:
– Dow Jones: -1,859.02 to 21,694.20
– S&P 500: -8.57% to 2,508.38
– Nasdaq: -8.49% to 7,277.19
– Oil: -5.4% to $31.20
– Gold: -$67.30 to $1,575.00
What will Friday the 13th bring?
Leave a Comment