Fed boss Powell speaks down Wall Street | Financial

The leading Dow-Jones index ended 2.2 percent lower at 23,247.97 points. The wide S&P 500 dropped 1.8 percent to 2,820.00 points, and technology grade meter Nasdaq dropped 1.6 percent to 8,863.17 points.

According to Powell, the corona crisis can continue to damage U.S. households and businesses if government policy makers fail to quickly change course. Extra tax aid can be expensive, he says. “But it is worthwhile if it helps to prevent long-term economic damage, which will allow the economy to recover more strongly,” he said. He stressed that the Fed wants to stay away from negative interest rates.

Speech

Powell’s speech put pressure on bank shares, among other things. Major banks like Wells Fargo, JPMorgan Chase, Goldman Sachs and Bank of America lost up to 6.3 percent. The fall in energy funds was also noticeable. Heavyweights like Chevron, ExxonMobil and ConocoPhillips lost up to 5 percent.

Tesla (minus 2.3 percent) fell into the red after a higher start. If it’s up to President Donald Trump, the automaker should be able to open his factory in California as soon as possible. Tesla opened its factory in Fremont, California earlier this week, which goes against the decision of local authorities. Reportedly, Tesla would also be preparing to open another Nevada plant entirely, rather than partially.

Caribbean Cruises

Cruise company Caribbean Cruises lost almost 5 percent. The company issues billions in bonds. In addition, the company uses 28 of its ships as collateral.

Trump, meanwhile, announced that U.S. measures against certain Chinese companies such as Huawei and ZTE have been extended by a year, which will do no good to the relationship between the countries. The extension specifically means that US companies are excluded from using telecom equipment from companies that pose a security risk.

The euro was worth $ 1.0816 against $ 1.0839 when it closed in Europe earlier today. A barrel of American oil cost 0.9 percent less at 25.55 euros. Brent oil became 2.1 percent cheaper at $ 29.35 a barrel.

–