James48843
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As of Monday morning, the S&P 500 opened more than 8% lower, immediately triggering a 15-minute trading halt launched when an index fall more than 7% from the prior session’s close. The so-called “circuit breaker” is intended to prevent further immediate losses.
During the overnight session, futures for each index were pinned to their “limit-down” levels established by CME Group daily to prevent further extreme losses, after each dropping more than 4%.
The early volatility suggested the three major indices would add to declines that plunged them into a bear market just days ago, or more than 20% below their recent highs. The SPY ETF (SPY) tracking the S&P 500, which continued to trade during the pre-market session, suggested a drop of more than 9% by market open for the blue-chip index.
Federal Reserve rate cut
Stock futures opened sharply lower Sunday evening, even after the Federal Reserve launched a massive monetary stimulus program — including cutting rates to effectively zero and unveiling plans for large-scale asset purchases.
Specifically, the Fed slashed benchmark interest rates rates by 100 basis points to a band of between 0% and 0.25%. Underscoring the growing fears of a worldwide recession, the surprise announcement came just days ahead of the Fed’s scheduled March monetary policy meeting on Tuesday and Wednesday — and less than two weeks after the Fed had also unexpectedly cut rates by 50 basis points to a range of 1.00-1.25%.
More:
https://finance.yahoo.com/news/stock-market-news-live-updates-march-16-2020-220735000.html
During the overnight session, futures for each index were pinned to their “limit-down” levels established by CME Group daily to prevent further extreme losses, after each dropping more than 4%.
The early volatility suggested the three major indices would add to declines that plunged them into a bear market just days ago, or more than 20% below their recent highs. The SPY ETF (SPY) tracking the S&P 500, which continued to trade during the pre-market session, suggested a drop of more than 9% by market open for the blue-chip index.
Federal Reserve rate cut
Stock futures opened sharply lower Sunday evening, even after the Federal Reserve launched a massive monetary stimulus program — including cutting rates to effectively zero and unveiling plans for large-scale asset purchases.
Specifically, the Fed slashed benchmark interest rates rates by 100 basis points to a band of between 0% and 0.25%. Underscoring the growing fears of a worldwide recession, the surprise announcement came just days ahead of the Fed’s scheduled March monetary policy meeting on Tuesday and Wednesday — and less than two weeks after the Fed had also unexpectedly cut rates by 50 basis points to a range of 1.00-1.25%.
More:
https://finance.yahoo.com/news/stock-market-news-live-updates-march-16-2020-220735000.html
