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Wall Street closed in the red after an unexpected Fed decision

US, WASHINGTON (NEWS OBSERVATORY) — Wall Street closed in negative territory on Tuesday after the US Federal Reserve surprised investors by lowering interest rates by 50 basis points, reinforcing concerns about the size of the economy’s impact of coronavirus.

The rate cut underscored the concern of the US central bank over the coronavirus, which has already spread around the world.

“Price cuts underscore the scale of the problem the global economy is facing,” said Peter Kenny, founder of analytic Kenny’s Commentary and Strategic Board Solutions in New York.

“Typically, markets welcome rate cuts, and hope so. Now that we got it, the question is, what’s next? ”

Wall Street on Friday showed the largest weekly decline in more than ten years, as an increase in the number of cases of the virus outside of China has sparked fears of a global recession.

The Dow Jones fell 2.94% to 25.917.41 points, the S&P 500 lost 2.81%, dropping to 3.003.37, and the Nasdaq Composite fell 2.99% to 8.684.09.

Shares of the manufacturer of medical masks Alpha Pro Tech jumped by almost 20%.

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Article is written and prepared by our foreign editors from different countries around the world – material edited and published by News Observatory staff in our US newsroom.