Snappy newsletters. Simple Facebook sharing. Spirited comments. Sweet features are waiting… GET THEM NOW!

Hot on Facebook
Guy Buys $123 Safe on eBay, Finds $26,000 Inside Seller tries to get half the cash back, fails »

Stocks Plunge After Rate Cut

Investors had hoped for half-point cut

By Sam Gale Rosen,  Newser Staff

Posted Dec 11, 2007 3:54 PM CST
Email

(Newser) – Stocks plunged today after the Fed cut a key interest rate by only a quarter-point, Bloomberg reports. Investors who had hoped for a half-point fear the smaller cut won't do enough to stave off a recession. "They're thinking that the Fed doesn't get it," said a strategist. The Dow fell 294.26 to 13,432.77, the Nasdaq 66.6 to 2,652.35, and the S&P 500 38.31 to 1,477.65.

The news hit financials hard. "The market was looking for the Fed at this meeting to show a more aggressive stand either with the discount window or with the Fed funds rate and the statement,'' says a strategist. "It got neither.'' Texas Instruments and AT&T were both up slightly on raised profit forecasts.

A trader at left looks at the Fed interest rate decision as others work on the New York Stock Exchange trading floor, Tuesday, Dec. 11, 2007. The Federal Reserve cut a key interest rate by one-quarter of a percentage point Tuesday, trying to keep the country out of recession. The...
A trader at left looks at the Fed interest rate decision as others work on the New York Stock Exchange trading floor, Tuesday, Dec. 11, 2007. The Federal Reserve cut a key interest rate by one-quarter...   (Associated Press)
Traders gather to watch the Fed interest rate decision as they work on the New York Stock Exchange trading floor, Tuesday Dec. 11, 2007. The Federal Reserve cut a key interest rate by one-quarter of a percentage point Tuesday, trying to keep the country out of recession. The reduction in...
Traders gather to watch the Fed interest rate decision as they work on the New York Stock Exchange trading floor, Tuesday Dec. 11, 2007. The Federal Reserve cut a key interest rate by one-quarter of...   (Associated Press)
A television screen in a booth on the trading floor of the New York Stock Exchange announces the Fed interest rate decision, Tuesday, Dec. 11, 2007. The Federal Reserve cut a key interest rate by one-quarter of a percentage point Tuesday, trying to keep the country out of recession. The...
A television screen in a booth on the trading floor of the New York Stock Exchange announces the Fed interest rate decision, Tuesday, Dec. 11, 2007. The Federal Reserve cut a key interest rate by one-quarter...   (Associated Press)
« Prev« Prev | Next »Next » Slideshow
To report an error on this story, notify our editors.
A snapshot of the day's best news stories.
 
COMMENTS
Be the first to comment on this story.

Analyst: "There are some players out there who were hoping or estimating they would cut a little bit more"
MarketWatch

 
stock market • Federal Reserve • interest rate cut

More Newser Stories

Market Dips as Eyes Turn to Fed

Stocks Rocky After Rate Cuts

Stocks Sink as Bernanke Hints at Rate Cut

Rate-Cut News Sweeps Away Rally

Stocks Blast Off; Dow Rises 420
NEWS FROM OUR PARTNERS
Other Sites We Like:   24/7 Wall St.   |   Betty Confidential   |   BuzzFeed   |   Cracked   |   Fark   |   Timelines   |   The Frisky   |   Geek Sugar   |   NewsOne