NEW YORK (AP) — Wall Street is opening lower after a bill to provide emergency help to the economy stalled in Congress.
The Dow industrials fell 190 points, or 1%. The market had been set to open even lower until the Federal Reserve early Monday announced its most aggressive action yet to protect the economy from the extensive damage being caused by the coronavirus.
The Fed said it would buy as much government debt as it deems necessary and will also begin lending to businesses and local governments. European markets cut their losses after the Fed action was announced. Bond prices rose, sending yields lower.
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ORIGINAL STORY | U.S. stock futures are making a dramatic swing higher after the Federal Reserve announced it will lend to small and large businesses and local governments as well as extend its bond buying programs.
Futures for the Dow Jones Industrial Average were down about 500 points before the Fed announced its actions. The Dow futures swung nearly 1,000 points and as of 8:30 a.m. were up 422 points. Futures for the S&P 500 showed a gain of 50 points.
The announcement Monday is part of the Fed’s ongoing efforts to support the flow of credit through an economy ravaged by the viral outbreak.
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