MARKETS USA losses despite Fed measures – gold is the key

After fluctuating trading, the Dow Jones index was 18,592 points, a 3 percent drop. The S&P 500 fell 2.9 percent, while the Nasdaq indices saw little change, supported by solid semiconductor stocks. The only 612 winners faced 2,424 losers, 27 shares closed unchanged.The Fed plans to buy $ 375 billion in government bonds and $ 250 billion in mortgage bonds this week alone.

In addition, it plans to start buying government finance agency papers, which are mostly deposited with securitized loans to purchase residential property in apartment buildings. It thus sends the signal that politicians have so far been guilty of.

Because a violent tug of war has flared up around the planned gigantic aid program in the USA against the economic and social consequences of the corona crisis. For the second day in a row, the up to $ 2 trillion package of measures was blocked by opposition from the Senate Democrats. The “political disturbances” add to the uncertainty, said David Bahnsen of The Bahnsen Group. Investors were disappointed. “Access to credit and liquidity, the adoption of the US fiscal package, and a slowdown in the spread of the disease are the three things we need to recover. The Fed has delivered one point, but only one,” said chief economist Ian Shepherdson by Pantheon Macroeconomics.