The stock market plunged this afternoon despite the half-point emergency rate cut by the Federal Reserve this morning. The cut is two weeks ahead of the scheduled monthly meeting and is meant as a measure to promptly act against the economic impact of the fast-spreading coronavirus.
The larger than expected cut by the Fed created fear in the stock market making it nervous about what to anticipate in the near future. It’s clear that the market still hasn’t found a direction. The sell-off will take some more time to firm up. According to financial advisors, if the virus situation grows, there will be more of an urgency to coordinate global efforts to offset the resulting weakness.