Jan. 22, 2008
The Dow Jones Industrial Average slid 128 points in a tumultuous session after the Federal Reserve cut its target for the federal- funds rate by three quarters of a percentage point to 3.5%. Stocks fell steeply early in the day, with the Dow shedding more than 460 points in the first few minutes of trading, after a broad two-day selloff that swept through stock markets in Europe and Asia. But the Fed's aggressive rate action cheered investors and drove some to snap up shares of beaten-down banks and Wall Street brokerages. Bear Stearns and Morgan Stanley each rose more than 7%. Dow component Home Depot also jumped more than 7%. Investors remain anxious, however, as a closely watched measure of market volatility soared by 14%.
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