The plunge post the latest move of the Federal Reserve in the United Stock futures is something that is completely relatable. The moves of the Federal Reserve have been made for the countering of the economic hit which it had received from the coronavirus outbreak
The expert known as Scaramucci who is the founder and the co-managing partners of the Skybridge Capital has said that the reason why these markets are selling off as of now is that they have a lot of information about the virus however they have very less understanding. What is going on right now is that they are starting to price the reduction in earnings in for the year 2020 and the possibility of the recession now as per him.
The stock market futures had soon hit the limit down levels after they fell by 5% post the announcement of Fed. While the central bank of the United States and its actions may be easing the functioning of markets, the investors also said that they would be wanting to see the cases peaking and falling in the United States before it was going to be safe to bet on and buying the equities once again.
Spread of the coronavirus has been infecting over 150,000 people all over the world and the cases in United States were close to 2,000 as of now as per the World Health Organization.
The moves of the Fed on this Sunday included the slashing of rates of interest to the zero level had been aimed at the countering of a bit of the impact of this outbreak on the economy of United States and its markets.