US stocks go down despite Fed relief, Dow falls 2,700 points

Mumbai, March 16 (SocialNews.XYZ) Stock markets in the US continued a freefall on Monday as both Dow Jones Industrial Average and the S&P500 slumped over 7 per cent lower circuit to trigger 15-minute halt in trading.

Trade, however, has resumed in both indices and the indices have fallen over 10 per cent.

Currently, Dow Jones is trading at 20,469.58, lower by 2,716.04 points or 11.71 per cent from its previous close.

S&P500 has fallen nearly 11 per cent or 295.63 points to 2,415.39.

The growing concerns of the coronavirus crisis persisted even as the US Federal Reserve has taken the extraordinary action of slashing the interest rate effectively to zero in emergency action to prop up the US economy battered by the coronavirus crisis and facing the risk of a recession.

Federal Reserve Chairman Jerome Powell said on Sunday evening that the rate cut and other actions were taken were meant to help the US "weather this difficult period."

Other measures announced by the Federal Reserve, the country's central bank commonly referred to as the Fed, include pumping $700 billion into the US economy by buying government bonds worth $500 billion and $200 billion of mortgage-backed securities.

US President Donald Trump has already declared a national emergency in the world's biggest economy over the coronavirus pandemic.

The Asian and European shares also plunged earlier in the day.

In India, the benchmark BSE Sensex recorded its second biggest single day fall as it ended over 2,700 points lower. The Nifty50 on the National Stock Exchange (NSE) settled below the 9,200 mark.

The Sensex closed at 31,390.07, lower by 2,713.41 points or 7.96 per cent from the previous close of 34,103.48. The NSE Nifty50 closed lower by 757.80 points or 7.61 per cent from its previous close of 9,197.40.

Source: IANS