January 30, 2008 at 12:00 pm by Tom Lydon
Once again, the Federal Reserve stepped in and made a half-point rate cut, a move that Wall Street and exchange traded funds (ETFs) apparently liked.
The rate cut didn’t come as a complete surprise, as the stock market had been banking on it. They just weren’t sure if it would be the half-point cut, or a more cautious quarter-point, reports Madlen Read for the Associated Press. The move today puts the federal funds rate target at 3%, the lowest since June 2005, according to Mark Felsenthal for Reuters.
Once the cut was announced, the stock markets went positive: within minutes of the decision, the Dow Jones industrial average jumped more than 100 points at one point. The S&P 500 and Nasdaq also rose following the report.
It’s positive news, but between this latest cut and last week’s unexpected three-quarter point cut, will it be enough to rejuvenate the economy? Let’s wait and see.
Tags: Dow Jones Industrial Average, Federal Reserve, Financial, NASDAQ, S&P 500
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