Stocks whipsaw after Fed cuts rates to counter virus effects
NEW YORK (AP) — Stocks whipped up and down Tuesday after the Federal Reserve swooped into the market with an emergency interest-rate cut in hopes of shielding the economy from the effects of the fast-spreading virus outbreak.
Major indexes shot higher after the surprise announcement, the first time the Fed cut rates outside of a regularly scheduled meeting since the financial crisis. The gains evaporated within 15 minutes, then indexes bounced higher, then lower. By late morning they were down 1%. The Dow surged 5% Monday in anticipation of moves by the Fed and other central banks to support the global economy following the worst week for stocks since 2008.
COPYRIGHT 2020 THE ASSOCIATED PRESS. ALL RIGHTS RESERVED. THIS MATERIAL MAY NOT BE PUBLISHED, BROADCAST, REWRITTEN OR REDISTRIBUTED.