Picture Source: Scott Olson/Getty Images/AFP
The Dow Jones crashed 1,000 points from its session high on Tuesday because stock market bulls drunk on rate cuts are finally sobering up.
- An emergency double rate cut from the Federal Reserve failed to stop the Dow Jones from sliding on Tuesday.
- A nervous stock market is left wondering how bad things are if the Fed would take such dramatic action.
- Dow bears pounced on the belief that interest rates will do little to influence a demand shock caused by the coronavirus.
The Dow Jones crashed 1,000 points from its highs on Tuesday after the Federal Reserve’s emergency rate cut provided temporary relief for a shaky U.S. stock market.
Further weighing on the bull case for the Dow, the 10-year U.S. Treasury bond yield plunged below 1% for the first time in history.