InvestorQ : Why did the Dow Jones Industrial Average (US Dow Index) weaken sharply on Tuesday trading?
Moii Chavate made post

Why did the Dow Jones Industrial Average (US Dow Index) weaken sharply on Tuesday trading?

Answer
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diksha shah answered.
3 months ago


There was some caution ahead of the all important Fed meet scheduled late on Wednesday. The Fed meet is expected to offer perceptions of the FOMC on economic recovery and the future trajectory of growth. The US economy is grappling with one of the worst economic slowdowns in the current calendar year. It may be recollected that the World Bank has estimated the global economy to contract by 5.2% with most developed economies, including the US and large swathes of Europe contracting by over 7%. Dow being a broad based index was a tad cautious on Tuesday expecting another warning from the Fed. World Bank has already warned that the economic slowdown of 2020 could be the worst since World War II. The markets will be expecting some big fiscal measures but the current political impasse in the US is only making matters worse.