On the same day, the three major stock indexes rose and fell differently, with the Dow closing at 25409.36, down 1.39%; the standard & Poors 500 index closing at 2954.22, down 0.82%; and the Nasdaq composite index closing at 8567.37, up 0.01%. This week, the Dow fell nearly 4000 points, while the S & P 500 fell more than 11%, the worst week for US stocks since October 2008, according to US media.
The novel coronavirus pneumonia Powell said in a statement this afternoon that the US economy is basically in good shape, but the risk of the new crown pneumonia epidemic is increasing. The Fed is closely monitoring developments and indicators of the economic outlook. The Federal Reserve will use its own tools and appropriate actions to support economic development.
The media saw Powells statement as a sign of interest rate cuts, saying the Fed was trying to calm market sentiment. The Associated Press reported that after the announcement, the three major stock indexes all showed a shock rise, and the Dow recovered more than 600 points of lost ground 15 minutes before the closing.
According to the New York Times, at present, investors have two major concerns: one is that measures to control the epidemic, such as large-scale isolation, will affect corporate profits; the other is that the epidemic itself will continue to deteriorate. Analysts were quoted by the Wall Street Journal as saying that the market was obviously affected by panic, but it is still difficult to judge how the future trend will develop, suggesting that investors should adopt a balanced strategy and not rush to buy or sell shares.
Novel coronavirus pneumonia is a major factor that triggering market panic, so a short-term review of the Feds positive information may be limited, according to a commentary published on the New York Times website. In order to alleviate the economic impact, we must rely on effective medical measures to truly control the spread of the epidemic. (end)