Dow stumbles by 200 points when Fed Fed says impact of coronavirus crisis is "unprecedented modern"

The Nasdaq Composite Index
COMP,
+ 0.37%,
Meanwhile, it traded at 8,942., At 41 points, or 0.5%.

I need to know:Why Druckenmiller says the risk reward for investing in stocks has never been worse

What drives the market?

Powell said economic recovery could be gradual and that additional government assistance to households and businesses "was worth it" to prevent lasting damage from developing, in a discussion in online with the Peterson Institute for International Economics on Wednesday. .

"The recovery may take some time to gain momentum, and the passage of time can turn liquidity problems into solvency problems," said the chairman of the Fed.

"Additional budget support could be expensive, but it is worth it if it helps prevent long-term economic damage and leaves us with a stronger recovery," he said.

The creator of monetary policy said it was up to Congress and the administration to consider this compensation.

The head of the Fed also rejected the idea of ​​negative interest rates after the federal funds futures market last week, for the first time, showed some traders that they were betting that they could become a reality in the United States. USA

"Trump recently watered down his criticism of Powell & Co, suggesting that so far he is satisfied with the Federal Reserve's response to the virus crisis. But the longer the US economy stays. USA In some form of blockade and the slower the resulting economic recovery, the more Trump will pressure the Fed to do more, "said Raffi Boyadjian, investment analyst at XM, in a research note.

Trump tweeted Tuesday that the United States should accept "the GIFT" of negative rates.

In economic reports, the April producer price index fell 1.3%. Economists polled by MarketWatch predict an average 0.5% drop in the index.

Meanwhile, analysts said there was no single catalyst for Tuesday's decline. Some have argued that statements by Dr. Anthony Fauci, the government's top infectious disease expert, in testimony before the Senate had helped to lift the mood after warning that premature reopenings could create spikes in cases that could become new epidemics. .

Watch:Coronavirus deaths in the United States are likely. USA Be higher than the official figure, said Dr. Fauci to the Senate committee

Which companies are targeted?

• Actions of Tesla Inc.
  TSLA,
  + 1.10%

  up 1.3% after a report on Tuesday evening that the electric vehicle manufacturer would completely reopen its "gigafactory" battery in Nevada after Tesla reopened its car manufacturer in Fremont, California on Monday. , defying local regulations.

• Transport company Uber Technologies Inc.
  UBER
  -0.09%

  y Grubhub Inc.
  FOOD,
  -2.63%

  They weren't able to agree on a price that would allow Uber to acquire the food delivery company, CNBC reported Tuesday evening. Uber also announced that it would sell $ 750 million of bonds maturing in 2025. Uber shares fell 1.8%, while Grubhub shares fell 3 , 8%. Opinion: Uber and Grubhub have called "a further decline in pandemic speculation", and that is not the only problem

• Royal Caribbean Cruises Ltd. Share
  RCL
  -1. 33%

  It fell 1.8% on Wednesday after the cruise line announced it would sell $ 3.3 billion in debt. The company will use the proceeds to repay another $ 2.35 billion loan.

How do other markets work?

Crude prices rose Tuesday with West Texas Intermediate crude scheduled for delivery in June
CLM20
-1.20%

up to 3 cents, or 0.1%, at $ 25.81 per barrel. In precious metals, the price of an ounce of gold in June
GCM20,
+ 0.39%

increased by $ 13.30, or 0.8%, to reach $ 1,720.

The yield on the 10-year US Treasury bill
TMUBMUSD10Y,
0.658%

It fell 3 basis points to 0.66%.

The US dollar lost ground against a basket of its six main rivals, the US dollar ICE
DXY
-0.04%

down 0.2%. The dollar continues to grow 3.4% so far this year.

In Europe, stocks have gone down. The Stoxx Europe 600
SXXP
-1.60%

it was down about 1.2%.

In Asia overnight, the Chinese benchmark CSI 300
000300,
+ 0.20%

wins 0.2%, Hong Kong's Hang Seng
HSI
-0.27%

closed down 0.3% and Nikkei of Japan
NIK
-0.48%

paid 0.5%.