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Fed's security purchases threaten U.S. housing market: Mortgage lenders

The Fed launched an aggressive use of its powers to help lift the economy as social distancing measures increased to stop the spread of coronavirus continue. CNBC’s Steve Liesman reports on whether the experts think the Fed’s efforts will be enough.

Stocks rose on Monday, building on a strong rally from last week as the U.S. extends measures to contain the coronavirus outbreak.

The Dow Jones Industrial Average was up 500 points, or 2.2%. The S&P 500 climbed 2.4% while the Nasdaq Composite traded 2.9% higher. Tech stocks such as Microsoft, Alphabet and Amazon led the way higher for Wall Street. Microsoft jumped more than 5% while Alphabet and Amazon climbed 2.6% and 3.6%, respectively.

President Donald Trump said at a news conference Sunday the national social distancing guidelines have been extended to April 30, adding the death rate from the virus would peak in two weeks. These measures, while they may cause a sharp economic disruption in the near term, are seen by some investors as preventing long-term damage to the economy.

Sentiment was also lifted after Johnson & Johnson said it identified a lead vaccine candidate for the coronavirus. The company noted that human testing on the potential vaccine will begin in September. J&J shares climbed 7.6%. Italy also reported its lowest number of new cases in almost two weeks.

The Dow last week posted its biggest weekly gain since 1938, surging more than 12%. The S&P 500 and Nasdaq are coming off their best week since 2009, after rising 10.3% and 9.1%, respectively. To be sure, it was a volatile ride for investors. The S&P 500 posted daily swings of at least 2.9% in four of the five sessions. That includes a 3.4% drop on Friday for the S&P 500.

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  1. The position the world is in, is tied directly to the discrimination through education!!!
    This country was built by the working man, stolen by the educated man!!
    Problem comes with only the most brain dead can make it through the mind killing experience know as education!!!!
    The great equalization is coming, a time when those who can't build, fix, improvise will be gone!!!

  2. first they elected stalin, then they turn to communism

  3. It works the other way too when rates go up. Is that the Fed's fault too? No complaint then – it's only when they lose money.

  4. We need more blankets and less blankets!

  5. dont be too specific on a certain sector. perhaps the best way really is to focus on treasury bonds and let the banking sector do the job as well as the white house and congress can do the bail out, not fed directly to certain specific instrument. just focus on repo and inflation.

  6. Fed killing the shorters. Fed had unlimited money while shorters don't.

  7. a completely manipulated market designed to choose winners and losers – now that we know the Fed has heard the message then those that know how will make billions on that info – we really just need to turn CNBC into a ticker tape of what the fed is buying and selling today – that is the stock market -but now the bond and the dollar are a problem – Ted Cruz threatening Saudi because his donors are going broke with the low oil price – that is a problem – Are we really going to send our kids into harms way to protect the profits of some billionaires that started a fight and want our kids to finish it for them? Low oil prices are good for the people – but not good for the speculators in fracking

  8. never can debt be a problem.

  9. Another bashing from hedgefunds holding toxic mortgages and mortgage bonds.

  10. Everything is the Feds fault, they have allowed our entire economy to become a house of cards built on sand, now they have to buy everything in the debt markets with money created out of thin air…

  11. Was in the process of buying a place when covid hit. Now TD bank wants more down payment. 🖕🏻 TD Bank! Scraping that deal. Hope the banks crumble too!

  12. #NoBubbleHere

  13. cool content bro


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