Stocks swung upward after big opening losses today, the Wall Street Journal reports, helped by speculation that the Federal Reserve might step in to help AIG and cut interest rates. The Dow, down 155 early, was just barely negative before noon, with a similar pattern from other indices. “We're in uncharted territory,” one funds manager told Bloomberg. “There's no real historic precedent for what we're going through.”
The Federal Open Market Committee is set to announce its rate decision around 2:15pm Eastern, and investors are certain it will be a quarter-point cut. They also believe the Fed will provide a loan for AIG, giving it time to sell assets and regain its footing.