Updated from 2:39 p.m. EST
Wall Street bought the news Tuesday, bidding up stock prices for a second straight day following the
Fed's decision to cut rates by half a percentage point.
Dow Jones Industrial Average ended up 150 points, 1.6%, to 9591. The
Nasdaq closed up 41 points, or 2.3%, to 1835, and the
S&P 500 gained 16 points to 1119.
The Fed was widely expected to cut interest rates, but economists were divided over the size of the reduction. The half-point decision, coming at about 2:20 p.m. EST Tuesday, turned modest gains into an outright rally.
Tech investors were also digesting better-than-expected earnings and revenue reported Monday by
. The network equipment company said it earned a pro forma 4 cents a share on revenue of $4.45 billion. Analysts had been expecting earnings of 2 cents on revenue on $4.19 billion. Cisco shares closed up 57 cents, or 3.2% to $18.47.
shares were under pressure after Goldman Sachs downgraded the company, citing an anticipated drop in its 2002 earnings. Shares of the media titan fell 41 cents, or 2.1%, to 18.75.
was among the most active stocks Tuesday, trading up 33 cents, or 2.7% to $12.39.
Overseas markets ended lower, with London's FTSE 100 down 1% to 5208 and Germany's Xetra DAX losing 0.3% to 4739. Japan's Nikkei closed up 1.8% at 10,634 while Hong Kong's Hang Seng lost 0.7% to 10,356. A report out in Germany showed unemployment there rising to a three-year high, possibly increasing the pressure on the European Central Bank to cut rates when it meets this week.
The 10-year Treasury note was recently gaining 7/32 to 105 26/32, yielding 4.27%.