Independent, Fee-Only Financial Advisor
Tuesday, September 18, 2007
Fed cuts 1/2 point.
Stocks marked their biggest gains of the year after a surprisingly large interest-rate cut by the Federal Reserve. Each of the major indexes gained over 2.5%, with the S&P 500 leading at 2.92%. The half point cut exceeded the expectations of most market watchers, who generally expected a quarter-point cut and stocks jumped immediately on the news. Wall Street likes rate cuts because they make borrowing cheaper, but the cuts can also stoke inflation. Oil prices climbed to settle up 94 cents at $81.51, their second consecutive record close. Tuesday definately lived up to the hype. DJIA +335.97 Nasdaq +70.00 S&P 500 +43.13
Posted by Jeremy Stringer