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...
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| Dow Jones | S&P 500 | NASDAQ | 10-Year Note | |
|---|---|---|---|---|
| 10,309.92 | 1,091.49 | 2,138.44 | 32.31 |
Oil *
77.12
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DOWN
154.48
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DOWN
19.14
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DOWN
37.61
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0.48
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3.23%
SPDR Gold
115.06
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-1.48%
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