Stocks end broadly lower on Wall Street as investors wait to see if Democrats and Republicans can settle their differences on an economic rescue package. The Dow drops 3%, or about 580 points.
FILE - In this Saturday, March 21, 2020 file photo, a lone pedestrian wearing a protective mask walks past the New York Stock Exchange as coronavirus concerns empty a typically bustling downtown area in New York. Stocks around the world swung lower Monday, March 23 even after the Federal Reserve announced a tidal wave of support for lending markets, going way beyond the “bazooka” it had already unloaded.
As Congress was locked in stalemate, the number of known infections worldwide jumped past 350,000. After just a few weeks, the United States has more than 35,000 cases and more than 400 deaths. Markets are likely to remain incredibly volatile as long as the number of new infections accelerates. Until then, investors are looking for both central banks and governments to do their parts to support the economy.
“This is excellent, comprehensive, covering many areas of the financial markets, their function, the flow of credit — this is exactly what was needed,” said Donald Kohn, former Fed vice chair and now senior fellow at the Brookings Institution. “The Fed has hit it out of the park as far as I’m concerned.″
Even if the two sides find a compromise, Congress may need to go through more rounds of similar negotiations if the outbreak isn’t brought under control. The S&P 500 lost 67.52 points, or 2.9% to 2,237.40 in another day of sudden swings. It was down as much as 4.9% and as little as 0.2% earlier in the day. Before trading opened, futures for the S&P 500 swung from a loss of 5% to a gain following the Fed’s announcement, a microcosm of the extreme volatility dominating the market in recent weeks.
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