On the first trading day of the week, we see the fall in US Treasury yields and stock index futures. The US Federal Reserve has cut interest rates again. The Federal Reserve did not wait for Wednesday's interest rate meeting. The central bank lowered interest rates by 1%, and the current US interest rate has ranged from 0% to 0.25%. The Federal Reserve is deeply concerned about the economic consequences of the Coronavirus. US Treasury yields fell more than 30 basis points. The S&P 500 futures dropped 5% and reaching a daily "limit down" while US stock markets ended Friday with a strong upside.
Read MoreLast night, the US stock market crashed. The Dow Jones Index, the NASDAQ, and the S&P 500 fell by 9.5% to 10%. All three indices are at least 25% off their recent peaks. It was the worst day in the US stock markets since the year 1987. Usually, when the stock market falls 20% from its recent high, The market has officially entered a downward trend. Investors are cashing in on all financial markets.
Read MoreThe global stock markets continue to plummet, and demand for the Japanese yen and US Treasury bills increase. The US president has stopped passenger arrivals from Europe for 30 days to limit coronavirus spread. While investors were awaiting details of the US government's protection package to combat the Coronavirus, Donald Trump made no mention of the features of the protection package.
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