American traders are preparing for another sharp drop in stocks on Monday, as large sectors of the US economy began to close amid the outbreak of the Corona pandemic, after the CDC’s decision and advice to ban rallies of more than 50 people nationwide, and the Federal Reserve cut interest rates To almost zero.
The CDC announcement prompted four states to ban the opening of bars and restaurants, and other states are expected to follow suit in a move that would cost the US economy billions of dollars.
The Dow Jones industrial average futures contract fell more than 1,000 points on Sunday, and stock futures fell after the Federal Reserve cut interest rates to almost zero.
Declines have reached the so-called downside levels, which means that prices cannot trade below that level.
This indicates that investors are not reassured, as the US Federal Reserve cut interest rates for the second time in less than two weeks in another emergency step to help support the US economy.
The central bank had said in a statement that it was cutting interest rates to a target range between 0% and 0.25%.
Most economists believe that the US economy will enter a recession soon if it has not already entered, and on the whole, the Fed's measures amount to recognizing that the US economy faces the most serious conditions since the recession ended more than a decade ago.
It is reported that the Black Monday is called on Monday October 19, 1987 when stock markets around the world collapsed, falling high value in a short period of time, and the collapse began in Hong Kong and spread west to Europe, hitting the United States after the prices of other markets fell by a large margin, as Dow Jones Industrial 508 points (22.61%).