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The Fed is propping up money market funds. Here’s what that means for investors

The Fed is propping up money market funds. Here’s what that means for investors

Finance
If you have cash parked in a money market fund that invests in non-U.S. Treasury debt, the Federal Reserve says it's got your back.Late Wednesday, the Fed announced a new program that will make loans to financial institutions that buy shares in "prime" money market mutual funds, whose investments include corporate bonds. It's the latest move by the Fed to prop up the U.S. financial system as the fallout from the coronavirus pandemic continues to run roughshod over the economy. "The Fed is doing all it can to make sure the system's plumbing is working," said certified financial planner Mike Hennessy, founder and CEO of Harbor Crest Wealth Advisors in Fort Lauderdale, Florida.Traders work on the floor at the opening bell of the Dow Industrial Average at the New York Stock Exchange ...
FTSE attempts fightback after coronavirus market meltdown

FTSE attempts fightback after coronavirus market meltdown

Business
The FTSE 100 has started Tuesday with a fightback, following days of market turmoil due to increasing fears of coronavirus.London's blue-chip index was up around 2% shortly after opening, while the domestically-focused FTSE MID250 index gained 2%. However, shortly after 8.30, the FTSE 100 went into reverse, down more than 0.5%.European stocks were also attempting a recovery, with the pan-European STOXX 600 index up 2.7% just after 8am UK time, having fallen to its lowest point on Monday since November 2012.The Asian markets were mixed overnight, with Singapore and Malaysia both hitting their lowest points in around a decade but Tokyo and Hong Kong showing some positive notes. ...
Coronavirus and market volatility shuts down the IPO market for potential listings like Airbnb

Coronavirus and market volatility shuts down the IPO market for potential listings like Airbnb

Finance
Chesnot | Getty ImagesInvestors likely won't get their fix for newly public companies for a long time thanks to the financial turmoil caused by the spreading coronavirus. Logistics issues aside for investment bankers unable to travel, market volatility like this scares off companies who want to raise capital.The initial public offering calendar is looking sparse this year, with many road-show ready companies, like Warner Music, Madewell, Cole Haan and Atotech, pumping the brakes. The highly anticipated IPO for short-term home rental company Airbnb, which said it intended to go public in 2020, could be shelved as the coronavirus dents the travel industry and the economy slips into a recession. "Volatility from the coronavirus outbreak has now essentially shut down the spring IPO m...
Dow enters bear market territory as coronavirus continues to scare investors

Dow enters bear market territory as coronavirus continues to scare investors

Business
The Dow Jones Industrial Average has entered bear market territory after a volatile day of trading in the US.The market index confirmed a bear market for the first time since the 2008-09 financial crisis, after finishing more than 20% below its 12 February record close. It came after the World Health Organization declared that the coronavirus was now being treated as a pandemic.On Tuesday, US markets had surged on US President Donald Trump's promises of aid to help business through the outbreak, the Dow Jones soaring by more than 1,100 points.But on Wednesday, they gave up most of their gains as investors realised no details had been forthcoming, sending the index into reverse, falling more than 1,400 points or 5.86%. ...
Wall Street braces for more market volatility as wild swings become the ‘new normal’ amid coronavirus

Wall Street braces for more market volatility as wild swings become the ‘new normal’ amid coronavirus

Finance
Traders work during the opening bell at the New York Stock Exchange (NYSE) on February 28, 2020 at Wall Street in New York City.Johannes Eisele | AFP | Getty ImagesThe S&P 500 has never behaved like this, but Wall Street strategists say get used to it. Investors just witnessed the equity benchmark swinging up or down 2% for four days straight in the face of the coronavirus panic.In the index's history dating back to 1927, this is the first time the S&P 500 had a week of alternating gains and losses of more than 2% from Monday through Thursday, according to Bespoke Investment Group. Daily swings like this over a two-week period were only seen at the peak of the financial crisis and in 2011 when U.S. sovereign debt got its first-ever downgrade, the firm said."The message to...