I’m getting dizzy. Not more than 20 minutes ago, all of the major averages appeared to be on one of their patented end of the day tears, all of them up more than 3%. Then in the final few minutes, the entire rally evaporated.
The Dow Jones Industrial Average rose fell rose fell 86.18, or 0.95%, to 8,978.94.
The S&P 500 fell 11.49, or 1.22%, to 929.02.
The Nasdaq Composite, managed to stay in the black; it gained 7.74, or 0.5%, to 1,657.21
Still, given yesterday’s giant move , that’s actually fairly impressive.
It is tempting to say this was all about today’s half-point cut in the Fed funds rate down to 1%, but the Federal Reserve’s move had been widely expected; a smaller cut could have been very bad for stocks. Meanwhile, this afternoon brings yet another big batch of earnings reports. (I count at least 20 tech companies due in the next few minutes or so.)
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I Protest!
delong.typepad.com 10/29/2008 — Arnold Kling writes:
EconLog | Library of Economics and Liberty : It should also be noted that Brad DeLong hates Greenspan and adores Bernanke...
Ummm... No. I like Alan Greenspan a lot. I now think he was wrong not to move aggressively to ...
Deflation risk
econbrowser.com 10/29/2008 — There are plenty of things to worry about in the current economic situation. But deflation isn't one of them.
Greg Mankiw had a great article last weekend in which he challenged the view that macroeconomists have learned enough to prevent a repeat ...
Can the Fed in fact pop bubbles?
marginalrevolution.com 10/29/2008 — Megan McArdle wonders : Prospectively, if you want to do it effectively, you probably need to intervene in the very early stages. The Fed raised interest rates in the late 1920s, to no effect--indeed, it encouraged foreign capital to flow ...
Should We Be Scared of Deflation? —
The Big Money 10/29/2008
The Federal Reserve today dropped the benchmark fed funds rate to 1 percent, a nearly unprecedented move. While the Fed has flirted with low rates before and even dropped the rate to 1 percent between June 2003 and June 2004, that was when the ...
Rate-Cut Limbo—How Low Can You Go? —
The Big Money 10/30/2008
The Federal Reserve on Wednesday surprised few with its half-point interest rate cut, sending the benchmark federal funds rate to a measly 1 percent, its lowest in five years. The move surprised few, and yet the business press is still divided this ...
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