Dow drops nearly 800 points after the Fed's surprising news about the economy

Stocks went on a wild ride Tuesday after the Federal Reserve slashed interest rates by a half-point to help insulate the US economy from the global coronavirus outbreak.The Dow swung nearly 1,400 points from its low to its high point over the course of Tuesday. At one point, the index was down by 997 points. It finished down 786 points, or 2.9%, retracting Monday's buoyant rally, during which it recorded its best-point gain in history.

Bond yields are in part driven by future interest rate expectations, but yields has also come down as investors piled into safe-haven Treasuries. Bond yields and prices move opposite to each other. Stocks' pullback into negative territory showed just how aggressively the market had already priced in a rate cut, said Sebastien Galy, senior market strategist at Nordea.

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