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What A Day For Wall Street |
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Written by Administrator
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Tuesday, 18 September 2007 |
The Fed's unexpected .5% rate cut sent stocks soaring today.
Going into today's Fed meeting, most market analysts were bearish about the outcome. Most believed the market had already priced in a .25% rate cut, so the outcome would be, at best, expected and at worst, disappointing.
The Fed decided to cut the Fed Funds rate .5% as well as the discount rate by .5%. Along with market-friendly language, the meeting sent stocks soaring. The DOW went up over 300 points.
The rest of the week will be interesting as well. While some may decide to take profits, many hedge funds with sizeable short positions might scramble to cover and other investors may have renewed confidence in the market.
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