Stocks fell sharply again yesterday as U.S. lawmakers failed to push through massive fiscal stimulus to curtail the economic blow from the coronavirus. For a second time in less than 24 hours, a bill that would authorize giant fiscal spending to stimulate the economy failed to clear a key procedural hurdle.
The Federal Reserve announced it would purchase an unlimited amount of Treasury’s and securities tied to residential and commercial real estate to ward off a credit crunch. The Fed chief said “aggressive action” was needed to soften the blow to the economy from the coronavirus pandemic. The Fed said it would buy assets “in any amounts needed” to support smooth market functioning and effective transmission of monetary policy. The Fed had previous set a $700 billion limit for asset purchases.
The toy maker Hasbro saw their stock soaring yesterday after their CEO Brian Goldner told CNBC that the company was experiencing strong demand during the coronavirus pandemic. He also said that their supply chains are back up and running in China. Shares of Hasbro closed up 12.5%.
The coronavirus pandemic has destroyed global demand for oil, leading to the lowest oil prices in 18 years. Many gas analysts see gasoline prices in many parts of the US below $1/gallon in the next few weeks.
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