Fed Rate Cut Fails to Deliver Much Impact on Stocks

Fed Rate Cut Fails to Deliver Much Impact on Stocks

The stock market collected on its rate-cut IOU today from the Fed, but the central bank's move did little to boost the spirits of Wall Street.
The Federal Reserve delivered on its anticipated half-point cut in the Fed funds rate amid belief that anything less would have been a disappointment.
But the cut itself was met with a collective yawn that put indexes swinging around level ground, a modest selloff from after the announcement. Some, though, were hoping the move might help continue Wall Street's dramatic 11 percent rally Tuesday.
"Now that you've had that rally ... I think that most of the steam has been taken out of a post-Fed bounce," says Mike Burnick, director of research for Weiss Capital Management in Palm Beach Gardens, Fla. He adds that the market has been in a mode of "buy on the rumor, sell on the news" that was apt to lead to the selloff after the rate announcement.