On Tuesday, the 17th of March 2020, all three key indices of Wall St. wrapped up the day with solid gains, while the benchmark Standard & Poor 500 took a transcontinental dive of as much as 6 per cent, paring nearly half of Monday’s (March 17th) jawdropping slump, following US Treasury’s decision to set up a new credit line facility to avert a sweeping lack of liquidity amid an en masse sell-off pressure.
Besides, as coronavirus had slowly been stretching its grasps towards US economy, prompting a number of US state and local Governments to incline an Italy-type nation-wide lockdown, US Fed had revived a financial crises era purchase of short-term debts, which could be matured in a day, while Trump’s recent remark to open up a coffer worth of nearly €850 billion had added to further investors’ optimism.
Meanwhile, adding that the Fed’s attempt would wipe away concerns related to Wall St. lenders’ liquidity, a head of equities at Franklin Templeton, Stephen Dover said on Tuesday (March 17th), “This issue about liquidity has been a concern, and that’s what they’re trying to alleviate.
That said, what is as big a factor is that since this is a consumer-driven slowdown, you have to have fiscal stimulus... and we’re seeing around the world very large fiscal stimulus, so that’s a lot of what is affecting the market now,” while citing possibilities of further worsening of Wall St.
complexion, a managing director of equity trading at Wedbush Securities, Michael James said on Tuesday’s (March 17th) market wrap-up, “We’re far from out of the woods. We haven’t had back-to-back positive days for two weeks”.
Citing statistics, on Tuesday’s (March 17th) Wall St. round off, the trade-sensitive Dow Jones Industrial Average rose by 5.2 per cent to 21,237.38 and the benchmark S&P 500 surged 6.00 per cent to 2,529.19, while the tech-heavy Nasdaq saw a giant leapfrog of 6.23 per cent to wind down Tuesday’s (March 17th) Wall St. at 7,334.78.