US stocks tumble as Fed stresses need for stimulus


Shares fell to an eight-week low amid warnings from Federal Reserve officials about the need for more stimulus to pull the world’s largest economy out of a coronavirus-induced recession. The dollar has recovered.The S&P 500 closed near the threshold that many investors see as a market correction, while the Nasdaq 100 fell more than 3%, led by giants Apple Inc. and Inc. Fed chairman , Jerome Powell, reiterated that there is a long way to go. go for the economic rebound, which will likely require more support. The need for further assistance was also highlighted by Vice President Richard Clarida, Governor Randal Quarles and Regional Chiefs Charles Evans, Loretta Mester and Eric Rosengren.

The warnings come days after Congress virtually ended its pursuit of a bipartisan spending bill to replace Ruth Bader Ginsburg on the Supreme Court. It’s another blow to investors who are also watching cases of the virus increase in the United States amid a resurgence of infections around the world. Traders are increasingly cautious about the strength of the economic recovery, as the chances of a relaunch of Congress wane before a controversial election battle. The benchmark for US equities is on the verge of its first monthly decline since March.

“The markets are digesting and battling this idea that investors’ growth expectations may not materialize,” said Lauren Goodwin, economist and multi-asset portfolio strategist at New York Life Investments. “As the fiscal impulse in the United States begins to wane, some of these expectations of a slow and steady recovery are shattered.

On the corporate side, Tesla Inc. has plunged after its “Battery Day” event fell short of expectations. Nike Inc. rebounded from strong earnings, while GoodRx Holdings Inc. – which operates a telemedicine site and platform to track drug prices – surged in its business debut.

Here are some events to watch out for this week:

  • Powell and Treasury Secretary Steven Mnuchin will testify Thursday before a Senate committee on the economic response to the pandemic.
  • The first jobless claims in the United States are due Thursday.

Here are some of the main movements in the markets:


  • The S&P 500 was down 2.4% at 4 p.m. New York time.
  • The Stoxx Europe 600 index rose 0.6%.
  • The MSCI Asia-Pacific index fell 0.2 percent.


  • The Bloomberg Dollar Spot Index jumped 0.7%.
  • The euro fell 0.4 percent to US $ 1.1659.
  • The Japanese yen depreciated 0.4 percent to 105.40 per dollar.


  • The yield on 10-year treasury bills rose less than a basis point of 0.68 percent.
  • Germany’s 10-year yield was unchanged at -0.51 percent.
  • Britain’s 10-year yield rose two basis points to 0.218 percent.

Basic products

  • West Texas Intermediate crude fell 0.7 percent to US $ 39.52 per barrel.
  • Gold fell 2.1% to US $ 1,859.48 an ounce.
  • Silver depreciated 7.3% to US $ 22.62 an ounce.

– With the help of Constantine Courcoulas, Adam Haigh, Todd White, Cecile Gutscher, Lynn Thomasson, Vildana Hajric, Claire Ballentine and Nancy Moran.


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