Stock market attempts to claw back from Thursday depths after Fed announces 'big bazooka' to help ease Treasury market problems - MarketWatch

U.S. stocks bounced off Thursday lows after the Federal Reserve announced that it would offer $505 billion in a key area of the short-term funding market to help cure dislocations in Treasury trading, amid growing coronavirus anxieties. The measure is part of a broad package of easing measures. The Fed said it would offer $500 billion in a three-month repo operations on both Wednesday and Thursday. It also said it would offer $500 billion in a one-month repo operation tomorrow. In addition, the New York Fed added it would conduct one-month and three-month operations for $500 billion every week for the remainder of the month. The S&P 500 index SPX, -6.57% was off 4.7% at 2,613, but had been at a low of 2,500.65, while the Dow Jones Industrial Average DJIA, -7.05% was off 4.9% at 23,395, after hitting a nadir at 21,297, on track for its worst percentage loss since the 1987 crash at that point. Experts on CNBC described the action by the Fed as a "big bazooka," or at least an opening salvo in the central bank's attempt to help alleviate market dislocations, amid the COVID-19 outbreak. The Fed is expected to meet next week in a two-day meeting March 17-18, where it is expected to cut federal-fund rate, after already delivering an emergency cut on March 3--reducing rates by a half a percentage point.

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2020-03-12 17:39:28Z
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