Stocks rallied in early trading today after the Federal Reserve shaved a half-point off of one of its key interest rates, the Wall Street Journal reports. The Dow initially shot up more than 300 points; after settling some, it was up 150.46 by midmorning. European stocks were buoyed as well, with London's FTSE 100 jumping 2.1% after a disastrous plunge yesterday.
The Fed cut its discount rate to 5.75% from 6.25% and promised to keep it there until market liquidity, evaporated by the credit crunch, has been restored. Not everyone was impressed by the cut—or the surge it produced. "I think it signals somewhat of a panic move by the Fed here," one trader told the Journal, "and I would not have too much faith in this rally."