Fed made biggest rate cut in a decade. That may not be enough for stocks
When the Federal Reserve cuts interest rates, the stock market usually goes up. But the novel coronavirus appears to have contaminated the rules on Wall Street along with much of the planet.
The Fed on Tuesdayby 0.5 percentage points in an emergency move aimed at protecting the economy against the disease known as COVID-19. That was the biggest single cut in the Fed’s benchmark interest rate since October 2008 at the start of the financial crisis.
And yet, the market plunged. The Dow dropped 750 points on Tuesday, on top of what has mostly been a pretty terrible two weeks for stocks. The broader S&P 500 stock index was down 2.8% and the tech-heavy Nasdaq dropped nearly 3%.
[Source: CBS News]