Financial stocks reacted even more negatively to the Federal Reserve's fed funds rate decision Tuesday -- which, as was widely expected, resulted in a 25-basis-point cut -- than did the rest of the market.
The NYSE Financial Sector Index, after mostly underperforming the flat-lining broad indices ahead of the announcement, took a post-Fed-decision dive of 264.49 points, or 3%, to 8,672.74. The KBW Bank Index was plunging 3.9% to 95.3. Investors had mulled the possibility of a 50-basis-point cut, which may have contributed to the disappointment along with comments by Wells Fargo Chairman Richard Kovacevich, who foretold a rate cut as much as three times what the Fed actually implemented, according to a Bloomberg report this morning. He also predicted that this would ultimately help the economy to avoid a recession.- Loading Comments...
- Loading Comments...
Featured Photo Galleries
| Dow Jones | S&P 500 | NASDAQ | 10-Year Note | |
|---|---|---|---|---|
| 10,226.94 | 1,093.07 | 2,154.06 | 34.86 |
Oil *
77.65
|
|
UP
203.52
|
UP
23.77
|
UP
41.62
|
DOWN
0.17
|
10 Yr
3.49%
SPDR Gold
108.19
|
|
+2.03%
|
+2.22%
|
+1.97%
|
-0.49%
|
Data delayed 20 minutes |














