Home Uncategorized Stocks tumble after Fed warns more stimulus needed

Stocks tumble after Fed warns more stimulus needed

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European markets have opened in the red this morning as investor sentiment remains downbeat due to increased case numbers and central bank commentary weighing on equities. This comes after Federal Reserve officials argued that more fiscal stimulus from Congress will be needed to support the US economy through the Covid19 downturn. Investors took a bleak view of the warning, which comes as Democrat and Republican lawmakers remain at odds on what the next round of stimulus should look like. Enhanced unemployment benefits and funding for state and local governments are two of the main points of contention between the parties. Fed chairman Jerome Powell argued that the recovery will go faster if there is support coming both from Congress and the Fed, on Wednesday, adding that the power of fiscal policy is unequalled. Energy stocks took the hardest hit in the SP 500, with the sector plunging 4.6 on aggregate, while information technology names ended Wednesday 3.2 lower.