On Monday, local time, the US stock market plunged again, and the Dow Jones Industrial Average price index plunged 2250 points at the opening, and trading was almost immediately suspended. This is the third time in two weeks that the NYSE has triggered a "circuit breaker mechanism" to stop the stock market from plummeting. Less than an hour before U.S. stocks plunged again, Trump tweeted, "May God bless America!" ”
CNN reported on March 16 that the strong intervention of the US Federal Reserve Board has caused investors to panic, and the emergency interest rate cut has not appeased the market, but has the opposite effect.
TRUMP: May God bless America
The circuit breaker mechanism is a rarely used leverage that is activated when the S&P 500 falls 7%, and on Monday, the index fell more than 8.1% before stopping trading. The Dow opened down 9.7 percent, closing at 2,250, while the Nasdaq Composite fell 6.1 percent.
Despite the Federal Reserve's massive intervention on Sunday, investors shrugged off the stock market. The Fed cut interest rates to near zero at an emergency meeting and said it would buy another $700 billion worth of U.S. Treasuries and mortgage-backed securities.
CNN said the purpose of the rate cut was to prevent economic shocks from leading to the kind of credit crunch and financial market chaos that occurred during the global financial crisis. The last time the Fed lowered interest rates all the way to the bottom was during that financial crisis.
Earlier, on Friday, after Trump issued an emergency statement on the coronavirus outbreak, the Dow Jones index fell 10.5%, erasing the shock of nearly 2,000 points. The coronavirus outbreak has disrupted almost every aspect of life in the United States, potentially plunging the United States into recession.