Stocks Surge and then Cut Gains in Volatile Trading After Fed’s Super-Sized Rate Cut: CNBC

In a rollercoaster day of trading, stocks surged before cutting gains following the Federal Reserve’s unexpected and unprecedented rate cut in response to the economic impact of the coronavirus outbreak.

The Fed announced a massive 1.5 percentage point rate cut, the largest since the financial crisis in 2008, in an effort to bolster the economy and calm investors’ fears as the virus continues to spread globally.

Initially, the markets responded positively to the news, with the Dow Jones Industrial Average jumping more than 700 points in early trading. However, the gains were short-lived as investors grappled with the uncertainty surrounding the effectiveness of the rate cut and the severity of the economic impact of the virus.

The volatility in trading reflected the uncertainty and fear that has gripped the markets in recent weeks, as investors have struggled to gauge the full extent of the economic fallout from the outbreak.

Despite the initial surge in stocks, the markets ultimately closed lower, with the Dow finishing the day down more than 450 points. The S&P 500 and Nasdaq also ended the day in negative territory.

The wild swings in trading underscore the uncertainty and anxiety that have come to define the current market environment, as investors grapple with the unprecedented challenges posed by the coronavirus outbreak.

As the situation continues to evolve, investors will be closely watching for further developments and announcements from the Fed and other policymakers in an effort to navigate the turbulent market conditions.