It was one of the sharpest GDP contractions in the history of the US economy. Oil prices tanked on Thursday and the Dow opened with a huge gap down after the US GDP contracted by -32.9% for the Jun-20 quarter. The last time, the US economy had seen serious negative growth was in 1958, when it had contracted by -10%.

This de-growth in the US economy was worse than street estimates as capital investments, jobs and consumption demand took a big hit. Just a day earlier, the US Federal Reserve held status quo on rates and promised a relentless flow of liquidity. The massive US de-growth is a signal of how serious the problem is with the US and also indicative that the pain could be deeper and much more long lasting. Next few quarters could be critical.