NEW YORK, New York - Drastic moves by the U.S. Federal Reserve to provide unlimited quantitative easing, credit to small and medium-sized business, to defer student and credit card loans, and buy corporate bonds as well as treasuries, failed to persuade investors to stay the course on Monday.
"What the Fed did is important because it does help in the credit markets. But it's not enough from an equity market perspective," Willie Delwiche, investment strategist at Robert W. Baird in Milwaukee told the Reuters Thomson news agency Monday. "What we now need is leadership out of Congress to pass some sort of stimulus bill, because what the Fed's doing is relieving some problems, but it doesn't do enough to solve to solve what's out there."
While selling surged most of the day, losses were trimmed towards the end. The Dow Jones closed down 582.05 points or 3.03% at 18,591.93.
The Standard and Poor's 500 dropped 67.52 points or 2.93% to 2,237.40.
The Nasdaq Composite did best of all, falling just 18.84 points or 0.27% to 6,860.67.
On foreign exchange markets, the U.S. dollar continued to climb. The euro wilted to 1.0728 by the close in New York Monday. The British pound was softer at 1.1538, but like the euro recovered from earlier lows.
The Japanese yen was sharply lower at 111.24. The Swiss franc eased to 0.9848.
The Canadian dollar fell to 1.4502. The New Zealand dollar was little changed at 0.5700. The Australian dollar meantime, advanced to 0.5824.
Overseas equity markets were weak, but were recovering ground in late trade. In London, the FTSE 100 finished down 3.79%. The German Dax fell 2.10%. The Paris-based CAC 40 retreated 3.32%.
In Asia, the hardest hit market was the New Zealand market which dived 10% after the country shutdown was announced. The Australian market was also friendless. The benchmark All Ordinaries index fell 290.60 points or 5.98% to 4,564.10.
China's Shanghai Composite shed 85.45 points or 3.11% to 2,660.17.
The Hang Seng in Hong Kong dived 1,108.94 points or 4.86% to 21,693.13.
In Japan, the Nikkei 225 went against the trend, rising 318.52 points or 3.70% to 8,923.95.