Stocks cut losses dramatically after giant market intervention by Fed, Dow was down 9.5%
U.S. stocks recovered some of their steep losses on Thursday after the Federal Reserve announced extraordinary funding actions of more than $1 trillion to ease strained capital markets in the wake of the coronavirus sell-off.
The Dow Jones Industrial Average sill traded more than 1,100 points lower, or 5.7%, following the Fed’s action. The Dow was down as much as 9.5% at its low point, which would be its worst drop since the 1987 market crash.
The S&P 500 traded down 4.4%, joining the Dow in a bear market on Thursday. The main U.S. stock benchmark is now down 22% from its record set just last month. At one point, however, the S&P 500 was down more than 9%. The Nasdaq Composite recovered slightly, trading about 4.5% lower after plummeting more than 7%.
The Fed announced it will ramp up its overnight funding operations to more than …continued .
[Source: CNBC News]