The S & P 500 index fell about 4 percent after rising early in the day, as sentiment in the financial markets became more severe.
It was another sharp turn in the market, which was characterized by dizzying changes in the direction of the change last month, when investors are faced with the flow of events due to the coronavirus.
The fall on Friday meant that the industrial index Dow Jones has closed lower than it was the day before the inauguration of Mr. trump, erasing the so-called “blow the trump”, which the President cited as evidence of the success of his presidency. S & P 500 is also approaching this level.
The stock fell approximately 35 percent during the month, destroying trillions in value terms, and their fall happened on Friday, when the Federal reserve took another step — this time in support of mutual funds municipal money market to try to stabilize the economy.
In accordance with the plan announced Friday, the fed will take short-term municipal debt with a high rating as collateral under one of its emergency programmes. This will give banks an incentive to buy such debt at mutual money market funds that will allow them to quickly unload securities that they can quickly find the cash, and may not give the funds, a popular investment among ordinary people and companies to fail, as investors cash out the money because of the panic on the background of the pandemic COVID-19.