Emergency Rate Cut Sends Stocks Volatile Midday
The Fed's surprise rate cut comes in the wake of economic coronavirus headwinds
The Dow Jones Industrial Average (DJI) is off over 555 points midday, as Wall Street digests the Fed's decision to make an emergency rate cut by half a percentage point, to ease the impact of coronavirus-related economic headwinds. This news is devastating the financial sector, with some investors initially pricing in a larger effort from the central bank. While the blue-chip index originally swung 300 points higher this morning, the surge was short-lived. Both the tech-heavy Nasdaq Composite (IXIC) and S&P 500 Index (SPX) are significantly lower as well.
Continue reading for more on today's market, including:
One stock sporting unusual options volume today is Qiagen (NYSE:QGEN). The equity is surging after Thermo Fisher Scientific (TMO) agreed to buy the genetic testing company for $11.5 billion. So far 7,334 calls and 3,964 puts have crossed the tape, six times the average expected rate, with volume pacing in the 99th annual percentile. Today's jump now has QGEN trading back above its year-to-date breakeven mark, up 15.2% at $41.56, at last check.
Drugstore concern Rite Aid Corporation (NYSE:RAD) is one the best performers on the New York Stock Exchange (NYSE) this afternoon, last seen up 10% at $16.92. While the catalyst remains unclear, RAD today touched its highest intraday point since early January, and has been enjoying a leg of support from the ascending 50-day moving average on a longer-term basis as well.
Finance name GreenSky LLC (NASDAQ:GSKY) is one of the worst stocks on the Nasdaq today, last seen down 14.4% at $6.75 after last night reporting fourth-quarter results that were well below analyst estimates. The equity has been stuck in a series of lower highs since last August, and now sports a 23% year-to-date loss.
