The stock markets in New York were at a loss on Monday shortly after the opening bell. Pre-sentiment was supported by a new Federal Reserve support program for the US economy, but positivism proved short-lived.
The disappointment at the lack of a US deal on a sizeable stimulus package continued to occupy investors.
Shortly after the start, the Dow-Jones index fell 2.8 percent to 18,651 points. The broad S&P 500 dropped 2.8 percent to 2240 points, and the Nasdaq technology exchange lost 1.7 percent to 6757 points.
Among other things, the Fed is going to buy up loans to ensure that different types of credit for companies of all sizes and consumers can continue to be provided cheaply. The US central bank umbrella has previously launched two rate cuts and buyback programs.
According to the Fed, “enormous hardships” have been suffered as a result of the pandemic and it is now clear that the economy is facing “serious disruptions”. A Fed policymaker warned that unemployment in the United States could reach 30 percent due to the virus outbreak.
Boeing is once again in the spotlight with a plus of 1.7 percent. The aircraft manufacturer suspends the dividend and stops share purchases to protect its buffers. The crisis has hit the aviation sector very hard and the share of Boeing has plummeted by 70 percent since the beginning of February. Incidentally, investment bank Goldman Sachs stuck a buying advice on Boeing by the expectation that the company has had the worst.
Car manufacturer Ford Motor (minus 5.7 percent) announced that it would shut down factories in India and South Africa, among others, because of the outbreak. Factories in North America and Europe had previously been shut down. Home furnisher Bed Bath & Beyond will close most of its stores over the next two weeks, dropping 2.2 percent.
Toy manufacturer Hasbro announced that the first quarter was going pretty well and supplies backlogs will be caught in April. Hasbro won 10.5 percent.
Budget store chain Dollar General announced that it would hire 50,000 extra employees in the coming weeks to meet the high demand for groceries and household products due to the virus. Dollar General climbed 1.2 percent.