Wall St. ends lower after Fed Chair Powell’s call to Congress for help

by   |  VIEW 618

Wall St. ends lower after Fed Chair Powell’s call to Congress for help

On Wednesday, the 13th of May 2020, all three key indices of Wall St. extended their losing streak in to the second straight day after Fed Chair Jerome Powell had cautioned of a prolonged period of fiscal weakness because of the pandemic outbreak and had urged the US Congress to agree for further fiscal support following an approval of trillions of dollars in fresh relief bill, stoking frets over the extent of the wounds the pandemic outbreak has been inflicting into the US economy.

In point of fact, Wednesday’s (May 13th) heavy downpour in the Wall St. was largely prompted by the Fed Chair Jerome Powell’s warning of a protracted recession in the post-pandemic United States, while investors’ fret that the US Federal Reserve’s Wednesday’s (May 13th) call for further fiscal stimulus might be unheard, had added to further worries.

Meanwhile, referring to Powell’s indication that the pandemic might have already netted the US economy in to a lengthy, perilous and ludicrous recession which might not be weathered without a stronger policy response, a manager of trader strategy at TD Ameritrade in Jersey City, New Jersey, Shawn Cruz said on Wednesday (May 13th), “He’s saying if you want to avoid a slow recovery and long-term economic damage you need a strong fiscal response, effectively placing that responsibility back over to governments instead of central banks.

” Quoting statistics, on Wednesday’s (May 13th) Wall St. wind down, trade-sensitive Dow dwindled 2.17 per cent to 23,247.97 and S&P 500 shrugged off 1.75 per cent to 2,820, while the tech-heavy Nasdaq Composite was nudged 1.55 per cent lower to 8,863.17.