Fed Rate-Cut Jitters Knock Out Gains

Will the Fed cut rates, and by how much?
By Sam Gale Rosen,  Newser Staff
Posted Apr 28, 2008 3:46 PM CDT
In this May 5, 2008 file photo, billionaire Kirk Kerkorian is shown at the Oscar De La Hoya and Floyd Mayweather Jr. boxing match at the MGM Grand Garden Arena in Las Vegas.   (AP Photo/Kevork Djansezian, file)
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(Newser) – Stocks ended mixed today as concerns that the Fed might not cut rates at this week's meeting overwhelmed earlier gains that followed announcements of big deals, reports the Wall Street Journal. The Dow ended down 20.11 at 12,871.75, the Nasdaq up 1.47 at 2,424.40, and the S&P 500 down 1.47 at 1,396.37.

"If they cut by a quarter- or a half-point, I think that's fine," says a trader of tomorrow and Wednesday's Fed meeting. The markets initially rose on news of the big Wrigley and Ford deals announced today, but even the man behind the Wrigley sale sounded somewhat pessimistic. "My general feeling is that the recession will be longer and deeper than most people think,'' said Warren Buffett.