Fed makes surprise rate cut on Coronavirus risks

In a major surprise move, the Federal Reserve cut its policy rate  by 50 basis points Tuesday,  to combat risks from the coronavirus crisis.

Following a meeting of G-7 finance ministers and central bankers where they expressed resolve to combat risks from Coronavirus, the Fed announced its decision to lower the federal fund rate to 1-1.25%. It's the biggest rate cut since the fall of 2008 .

The Fed cited “evolving risks” to the economy due to Coronavirus crisis.

The S&P 500 spiked 37 points higher following the announcemnt, but slipped soon after. 10-year Treasury bond yields climbed to 1.103% while 2-year note yields traded at 0.78%