(13 Mar 2020) Stocks opened sharply higher on Wall Street on Friday, a day after the worst drop since 1987. The Dow Jones Industrial Average jumped 550 points, or 2.6% early Friday.
That's about a quarter of what the index lost a day earlier. European markets surged about 7% a day after one of their worst drops on record.
The wild swings continued as governments stepped up precautions against the spread of the new coronavirus and considered ways to cushion the blow to their economies.
Asian markets ended a volatile day mostly lower. Central banks in China, Sweden and Norway also stepped in to support bond markets.
The Federal Reserve is accelerating its purchases of Treasury securities to address ongoing disruptions in the Treasury bond market, the largest and one of the most important financial markets in the world.
The Fed said that it will purchase about $33 billion of Treasurys on Friday, out of the $80 billion it plans to buy over the next month. The Fed will purchase a range of maturities, from short-term bills to 7-year notes to 30-year bonds.
Typically, when stock prices plummet, as they have this week, Treasury yields fall as investors pile into Treasury bonds, which are considered the safest assets in the world. That raises their price but lowers their yields. But this week Treasury yields have risen, an unusual move that suggests many investors that want to sell large volumes of bonds are having difficulty doing so.

Find out more about AP Archive: [ Ссылка ]
Twitter: [ Ссылка ]
Facebook: [ Ссылка ] ​​
Instagram: [ Ссылка ]


You can license this story through AP Archive: [ Ссылка ]

свернуть