US stocks skid despite Fed's action to support markets

Source : IANS
Author : IANS
Last Updated: Tue, Mar 24th, 2020, 10:35:01hrs
US stocks skid despite Fed's action to support markets

New York:  US stocks finished Monday's session significantly lower even after the Federal Reserve unveiled extensive new measures to support the economy amid the COVID-19 crisis.

The Dow Jones Industrial Average shed 582.05 points, or 3.04 per cent, to 18,591.93. The S&P 500 decreased 67.52 points, or 2.93 per cent, to 2,237.40. The Nasdaq Composite Index erased 18.84 points, or 0.27 per cent, to 6,860.67, Xinhua reported.

Shares of United Technologies plunged 9.18 per cent, leading the losses in the Dow. The index traded about 960 points lower at one point during the session. Boeing shares soared more than 11 per cent, the best-performing stock in the 30-stock index.

Ten of the 11 primary S&P 500 sectors ended lower, with energy down 6.65 per cent, the worst-performing group. Consumer discretionary rose 0.35 per cent, the only gainer among the groups.

The Federal Reserve announced earlier in the day that it will purchase US treasuries and agency mortgage-backed securities with no limit to help markets function more efficiently amid coronavirus uncertainty.

"The coronavirus pandemic is causing tremendous hardship across the United States and around the world," the Fed said in a statement on Monday morning.

"While great uncertainty remains, it has become clear that our economy will face severe disruptions. Aggressive efforts must be taken across the public and private sectors to limit the losses to jobs and incomes and to promote a swift recovery once the disruptions abate," said the US central bank.