Robert Holmes
Separately, the Fed injected another $6 billion of liquidity into the system by way of a three-day repurchase agreement.
Despite the rally, the major averages were still lower for the week. The Dow lost 1.2% over the five sessions, the S&P 500 dipped 0.5%, and the Nasdaq ended down 1.5%. Peter Morici, professor at the University of Maryland School of Business and former chief economist at the U.S. International Trade Commission, questioned whether the gains will stick at the start of next week. "If markets fail to respond positively today and hold those gains through next week, the economy will be in a crisis of confidence that is truly threatening to our prosperity," he said. "If not, we are in much bigger trouble than economists have conceded so far." Breadth was decidedly positive for the only time this week. On the New York Stock Exchange 5.07 billion shares changed hands, as advancers topped decliners by a 7-to-1 margin. Volume on the Nasdaq reached 2.61 billion shares, with losers outpacing winners nearly 8 to 3. Overseas, Asia's indices were hit hard, but Europe bounced after the Fed cut. Tokyo's Nikkei 225 plummeted 5.4%, and Hong Kong's Hang Seng fell 1.4% overnight. London's FTSE rebounded from early losses to jump 3.5%, and Germany's Xetra Dax added 1.5%.
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