Stocks Surge on Big Fed Rate Cut

The FOMC's super-sized half-point easing Tuesday sparked huge gains in equity indexes. But concerns about broader economic slowing persist

With the gusto of Zorro swooping in for a rescue, on Tuesday the Federal Reserve slashed its target for the Fed funds rate by a surprising half-point, igniting the biggest rally U.S. stock indexes have seen all year. Most observers had hoped for only a quarter-point cut, even though talk of the need for more aggressive action has been unrelenting in recent weeks as signs of economic stress beyond the real estate market have mounted.

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