Stock market soars nearly 2,000 points, U.S. equities more than 9 percent after emergency declaration
By Bethany Blankley | The Center Square
(Worthy News) – At the close of business Friday, the Dow Jones Industrial Average was up 1,985 points to 23,186, nearly recouping Thursday’s more than 2,300-point loss. The S&P 500 gained 228 to 2,709 and the Nasdaq Composite was up by 672 points to 7,874.
All three indexes finished the day up more than 9 percent.
Leading up to President Donald Trump declaring a national emergency and opening up $40 billion in emergency aid, more than 6 billion shares changed hands on the New York Stock Exchange.
Earlier in the day, Trump again pressured the Federal Reserve to cut interest rates further.
“The Federal Reserve must FINALLY lower the Fed Rate to something comparable to their competitor Central Banks,” Trump tweeted Friday morning. “Jay Powell and group are putting us at a decided economic & physiological disadvantage. Should never have been this way. Also, STIMULATE!”
The president has called on the Fed to bring the interest rate percentage to zero, arguing it “should be a leader, not a very late follower.”
On Thursday, the Federal Reserve Bank of New York announced it will add $1.5 trillion to the national debt by purchasing financial assets to pump cash into the bond market.
It increased the scale of its repurchase agreements, buying Treasury bonds and other securities from banks and traders, to later sell back with interest soon after.
It offered $500 billion in repurchase operations on Thursday followed by $1 trillion Friday “to address highly unusual disruptions in Treasury financing markets associated with the coronavirus outbreak.”
The Federal Open Markets Committee meets next week to consider cutting the federal funds rate.
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