Major US stock indexes slid on Monday, even after the Federal Reserve announced plans to further support economic activity amid the growing coronavirus threat. Investors are looking at Congress for a fiscal deal.
during Monday's session, falling to an intraday low of 18,213.65. That erases all the index's gains since Donald Trump won the presidential election on November 8, 2016.
The Fed's latest monetary policy action further lowers the hurdle for businesses seeking cheap credit, but fiscal relief is increasingly important as demand rapidly fades, Seema Shah, chief strategist at Principal Global Investors, said in an email to Markets Insider. Congress remains mired in negotiations for their nearly $2 trillion stimulus package despite the Trump administration calling for such a bill to be passed on Monday. Monetary easing will only keep businesses afloat for so long, Shah said, placing the focus on the government to do its part in cushioning the downturn.
"Given some businesses' understandable reluctance to take on more debt during this tough economic time, the US economy still requires the US government to provide economic support in a way that doesn't involve additional borrowing," she wrote, adding that all kinds of policy tools will"quickly become out-dated" if the virus can't be effectively contained.
The S&P 500 is fresh off a nearly 5% decline on Friday as investors continued to wait for fiscal relief from the White House and Congress. The drop
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