...and hopes for a deal on Capitol Hill
The US stocks are opening with small losses after the Fed announced they would basically do unlimited QE. The Fed's actions is a vote of confidence that coronavirus will come and go, and the economy will rebound, when the unlimited buying can be unwound (or will it?). The Fed also announced that they would by corporate bonds for the first time ever. If the Fed can clear banks balance sheets of assets, it can lead to more lending where it is needed. The market is still that unsure as a fiscal deal on Capitol Hill to news to be hurdle. Stock futures were implying a much lower level overnight. The Dow implied opening was down -900 points at 1 point.
A snapshot of the major indices 3 minutes into the opening is currently showing
- S&P index -17.67 points or -0.77% at 2287.25
- NASDAQ index just turn positive by 13.228 points or 0.19% at 6892.74
- Dow is down 134 points or -0.70% at 19039.84
Price action is a very volatile on the opening.
In other markets:
- spot gold is trading up $22 or 1.48% at $1520.70
- WTI crude oil futures are trading near unchanged levels at $22.70
in the US debt market yields are mixed:
- 2 year 0.29%, -2.3 basis points
- 5 year 0.4188%, -4.1 basis points
- 10 year 0.818%, -2.7 basis points
- 30 year 1.497%, +8.1 basis points