Stock market live updates: Dow down 200, New Yorkers ordered to stay home, Amazon leads tech

The Federal Reserve Bank of New York announced it will increase its daily repurchase agreement operations (also known as “repo”) to $1 trillion for the rest of March. Repos are when banks submit high-quality collateral, such as Treasurys, in exchange for reserves from the Fed. Banks then use the money to fund their short-term operations. – Sheetz

Economists have been ratcheting down their economic forecasts, but none more than those at Goldman Sachs, who now see second quarter GDP contracting by 24%.

The Goldman economists expect the economy to trough in the second quarter, after a first quarter contraction of 6%. By the third quarter, they see a rebound of 12% and fourth quarter growth of 10%. But they also see GDP declining 3.8% for the year and unemployment reaching 9%.

Just five days ago, the economists had expected a 5% decline in the second quarter and a flat first quarter, but they said the sudden shutdown of large parts of the economy due to the virus is hitting the economy hard in the first and second quarter.

 Bank of America expects a 12% decline in the second quarter. – Domm

Stock losses accelerated around midday as the White House held a press briefing on the coronavirus. The Dow fell 141 points for a loss of 0.7%, while the S&P and Nasdaq were down 1.4% and 0.4%, respectively. – Stevens

Governor Cuomo said that 100% of the state’s workforce must stay at home, except for essential personnel. Stocks were trending lower before the Cuomo announcement and fell into the red as the headline hit. Investors may be worrying about just how economically disruptive the coronavirus may be. – Melloy

The Federal Reserve said Friday it would extend its asset purchase program into short-term municipal bonds. Thus far, the central bank has limited its efforts to Treasurys and mortgage-backed securities in an effort to keep liquidty flowing through the system and to stabilize credit markets. The announcement sent the iShares National Muni Bond ETF surging, last up 1.5%. – Cox, Li

Source: https://www.cnbc.com/2020/03/20/stock-market-live-today.html

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