Day Traders Diary
The major averages fell another 3% after dropping as much as 5% as U.S. lawmakers failed to push through massive fiscal stimulus to curtail the economic blow from the coronavirus.
The Dow Jones Industrial Average finished down 582 points or down 3.1%, at 18,591, its lowest closing level since November 2016. The S&P 500 slid 2.9% to 2,237. The Nasdaq Composite was down just 0.3% at 6,860.67 as investors began making small bets on technology stocks.
For a second time in less than 24 hours, a bill that would authorize giant fiscal spending to stimulate the economy failed to clear a key procedural hurdle. Senate Minority Leader Chuck Schumer, D-NY, said Monday afternoon after the second failure that he and Mnuchin would meet again to try and work out a deal.
The failed votes in the U.S. Senate were enough to pressure Wall Street once again even after the Federal Reserve announced an open-ended asset purchase program. The central bank said the program will run in the "amounts needed to support smooth market functioning and effective transmission of monetary policy to broader financial conditions and the economy."
Boeing rose 11.2% in a reprieve from the heavy selling endured over the past month as the company suspended production operations at its Puget Sound area facilities for 14 days, suspended its dividend, and extended its pause of any share repurchasing until further notice. Before the open Goldman Sachs upgraded Boeing to a Buy.
U.S. Treasuries finished higher amid the continued weakness in equities and the latest actions from the Fed. The 2-yr yield fell eight basis points to 0.29%, and the 10-yr yield fell 17 basis points to 0.76%. The U.S. Dollar Index declined 0.3% to 102.48. WTI crude rose 3.8%, or $0.86, to $23.49/bbl.
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