Skip to content
Subscriber Only

Worst-Case Dread Is Back in Stock Market After Powell Falls Flat

  • Emergency Fed rate cut fails to quell markets rattled by virus
  • Traders starting to search for where recession takes market
Jerome Powell pauses while speaking during a news conference in Washington, D.C. on March 3.

Jerome Powell pauses while speaking during a news conference in Washington, D.C. on March 3.

Photographer: Andrew Harrer/Bloomberg
Updated on

They bought the rumor, sold the news, and now investors are back to their real obsession: imagining what a recession looks like in equities. It’s not a pretty picture.

Making it worse are feedback loops, many of them emanating from markets themselves. Headlines hit, shares tank, nerves fray, travel is canceled. Shares fall some more. And while dynamics like those are always what derail rallies, it makes the challenge of visualizing the future no easier or less urgent.