While most commentators were expecting a .25% rate cut, the Fed ultimately decided to make a .50% cut on Sept 19. This sent stocks soaring. The Dow went up over 300 points.
Some people are afraid that the Fed made a bad decision long-term by fanning inflation. However, the Fed believed the cuts were necessary to avert a recession.
All stocks did well on Sept 19. However, it's not clear how much the Fed cut really affects some companies compared to others. Companies that are involved in the mortgage business certainly benefited, but it's not clear how much the Fed cut affected tech companies and other non-financials. Some stocks, which already were overpriced, may even become pricier now due to the Fed cut. There is still a lot of speculation where the market will go from here, and a lot of volatility is certainly likely.
Source: Free Articles