Fed Makes Emergency Cut
After seeing world markets taking a severe beating over the past two days (and some longer than that), the Fed stepped in Tuesday and cut the key interest rate .75%, marking the biggest one-time cut in rates since 1982. The Dow dropped like a stone as the markets opened on Tuesday, dipping down over 460 points, before rallying some in the afternoon to close down 128 points, at 11,971.
Many banks and financial institutions gained on the news. Merrill Lynch ended the day up almost 5%, and Bear Stearns, gained over 7%.
Tech stocks didn’t fare nearly as well. After the bell, Apple released its earnings report, and failed to meet expectations. Apple was down over 11% in after hours trading.
Thestreet.com has a write up about the fed cut here.
Herb Greenberg at SeekingAlpha.com, asks the $64,000 question, what if the cuts don’t work…
Filed under: Uncategorized
