Wall Street drops on Fed comment

Bloomberg May 13 | Updated on May 13, 2020 Published on May 13, 2020

Traders work on the floor of the New York Stock Exchange (NYSE) in New York, US, on Thursday, March 12, 2020.   -  Bloomberg

US stocks fell as Federal Reserve Chairman Jerome Powell said the economic outlook is uncertain and the downside risks are significant.

The S&P 500 dropped for a second day on Powell’s view that the recovery may take some time to gather momentum, and the passage of time can turn liquidity problems into solvency problems. Equities trimmed losses amid a rally in healthcare and technology companies that lifted the Nasdaq 100. Treasuries and the dollar were little changed as the Fed chairman pushed back against negative interest rates.

The S&P 500 decreased 0.3 per cent as of 10.16 am New York time.

Published on May 13, 2020
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