Stock Market Dismisses Global Rate Cuts

Furthermore, with one-month Treasury bills showing low yields, the impact of the rate cut remains questionable, said Hurley. "It's a great psychological tool, having a coordinated easing." However, "I'm definitely hearing more calls for additional rate cuts, which is not surprising."

James Paulsen, chief investment strategist for Wells Capital Management, said the Fed rate cut cannot address the primary problem in the stock market, which is a crisis of confidence.

Paulsen said that there's more of a chance investor fears will be assuaged when the Treasury Department's $700 billion Troubled Asset Relief Program takes effect next week.

On Tuesday, stocks fell hard as credit markets remained tight after an unprecedented Federal Reserve decision to begin buying commercial paper from U.S. businesses.

Pavlik said that Tuesday's selloff was encouraging, and the market may be primed for a short-term bounce. He said that although some companies may offer better-than-expected third-quarter earnings, "The picture is very cloudy for many companies. That's what may temper any bounce going forward." However, he did predict that the S&P 500 will end above 1000 for the year, somewhere between 1100 or 1200.

What's most important, said Paulsen, is that policymakers and leaders show confidence in the economy. "Maybe it's time to tell the market that, "Look, we've done enough. We think there's plenty of liquidity. There's plenty of juice. ... You guys figure this out.'" Paulsen said the market is priced for the worst-case scenario and not the actual current state of the economy. "If we could come down and come back just on confidence, that would do wonders," he said.