Dow Down 74 After Volatile Day

Late rally evaporates after Fed confirms cut, but most of Tuesday's gains are preserved
By Nick McMaster,  Newser Staff
Posted Oct 29, 2008 3:19 PM CDT
A TV screen in a booth on the floor of New York Stock Exchange shows the rate decision by the Federal Reserve today.   (AP Photo)
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(Newser) – Volatility ruled Wall Street today as investors waffled in their response to the expected Fed rate cut, MarketWatch reports. Though the session’s final hour saw the Dow rocket to a 250-point gain in light trading, that evaporated and the Dow closed down 74.16 at 8,990.96. The Nasdaq, however, finished up 7.74 at 1,657.21, while the S&P 500 lost 10.42 to close at 930.09.

“We're due for a slowdown in the volatility,” one fund manager told the Wall Street Journal, “but who knows when that will actually come?” The central banks of China and Norway also reduced interest rates, with the Bank of England, Bank of Japan and others expected to follow suit next week.