The Dow fell 2,800 points on the open, triggering a 15-minute halt to trading. This comes after the Federal Reserve took emergency action, reducing the interest rates to near-zero, leaving no room for movement.
What does this do to the dollar?
The stocks futures plummeted overnight upon word of the Feds emergency quantitative easing and rate decrease.
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.
Trading has resumed.
The fear over coronavirus and the airlines forecast of a $1.5 billion loss in March is pushing the markets down.
The oil wars continue and energy plunged as West Texas Intermediate crude oil cratered 8.6% to $29.35 per barrel.
Nike, Abercrombie & Fitch are closing their stores. Starbucks will close some.
Apple shares number after announcing the closure of their 468 stores outside of Greater China until March 27.
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Now is the time to buy. Hopefully you weren’t stampeded into selling. Pump as much as you can into stocks. You will make out like a bandit when all this BS is over and the market goes back up 20% in six months. For every seller there has to be a buyer. No analysis of who is selling and who is buying. That will tell you who is manipulating the markets. The individual investor should be in it for the long run (10+ years or more). Ignore the day to day and week to week fluctuations. Don’t be played for sucker.