What the markets got was travel suspended to Europe and a pep-speech that “this too will pass”. NO RED RYDER BB GUN FOR RALPHIE. All the American people were going to get is a pink bunny pajama from our nutty aunt. No Bazooka like we got in 2008.
From this point onward, futures fell until they were right at LIMIT DOWN. The Dow was indicated -1000 points lower on the open.
The markets opened and hit the -7% circuit breaker within minutes. Here we waited for 15 minutes before opening again, and then the selling continued.
Just before traders went to lunch in Chicago, Jay Powell of the Fed decided he would save the day with the mother of all BB guns – The Bazooka. He announced a total of $4 Trillion in stimulus – QE PART 4 – THE MOTHER OF ALL QE.
This took the SPX from -220 to -80 in a matter of minutes. This was not enough for the markets that wanted a lot of things to combat all the school closing, professional sports events closings, airline travel shutting down, etc. Kids can't even see Mickey on spring break because Disney is closing its parks.
Can you imagine that talk to the kids? My grandkids were scheduled to go, and I have to tell you, the 6-year old is BUTT-HURT.
The markets reversed within an hour, and went back to the starting point of SPX 2520. From there, things got worse as Senators announced that they were taking a short week and going home on Thursday with no coronavirus bill completed.
Further selling after finding out that Mitch McConnell and Nancy Pelosi couldn't agree on a bill to help the coronavirus problem as Democrats tried to jam the bill with personal items not related to the virus. Nothing is so bad about the virus that we can't insert a self-dealing politics into the mix.
Meanwhile, the media was beating up President Trump's handling of this by declaring an emergency and closing the boarders late. Lest we forget the swine flu pandemic that infected 20% of Americans and sent 274,000 Americans to the hospital. This eventually killed 1,000 Americans (500,000 globally) and took 6 months before the previous president declared it an emergency.