Text size

President Trump celebrated the Federal Reserve’s move Sunday to slash interest rates to near-zero and reinstitute its financial crisis-era bond-buying program. The market, however, had a very different response.

“It makes me very happy,” the President said moments after the Fed’s historic action. “I think that people in the market should be very thrilled.”

They weren’t. Dow futures plunged as much as 1,000 points—hitting a “limit down”—moments after opening Sunday evening as traders reacted to the Fed’s drastic measures and Trump’s brief remarks before he left the briefing room to hand the podium to Vice President Mike Pence and other public officials.

Before leaving, Trump also said that he has spoken with executives of major grocery chains including Walmart (ticker: WMT), Kroger (KR), and Target (TGT). He urged Americans not to engage in panic-buying, claiming that supply chains are intact.

“You don’t have to buy so much. Take it easy. Just relax,” Trump said, noting that even retailers have asked that shoppers slow down their buying. “I thought I would never hear that from a retailer.”

Other members of the President’s coronavirus task force took to the podium to give updates on their handling of the health crisis. Dr. Brett Grioir of the U.S. Public Health Service said that 1.9 million tests would be available this week. Dr. Anthony Fauci warned that while progress is being made, “the worst is yet ahead for us.”

Markets have been roiled in recent weeks with many businesses grinding to a halt as people stay home to avoid spreading the virus. On Friday, Trump announced a national state of emergency. On Sunday, the CDC recommended cancelling events with 50 or more people for the next eight weeks, while Wynn Resorts announced that it would close its Las Vegas casinos for at least the next two weeks.

Write to Carleton English at carleton.english@dowjones.com