Last week the market saw incredible drops – then it started to turn around.
The Fed dropped interest rates by a half-point this week in response to economic concerns related to the coronavirus. Unfortunately, the rate cut didn’t have the desired response.
The market continued to swing and closed on Tuesday down 2.9% - defeating Monday’s rally.
What’s next? No one can say for certain, but Fed Chairman Jerome Powell believes the U.S. economy will remain strong despite the negative impacts of the coronavirus.
CNN discussed the unexpected impact of the rate change on the market in their recent article.