The market had already priced in a 50 basis point rate cut anticipating the 1/31 meeting, so there was no upside surprise there. Stocks had rallied ever since the interim cut in early January, then sold off on the news. This morning there were a lot of people looking for weaker employment numbers than we got.
<Greenspan raises rates; stocks drop. Greenspan lowers rates; stocks go down. Yep, that makes a lot of sense.>
IMHO - Don't let daily fluctuations or what the market actually does on the day of the fed action fool you. Since the fed has made it clear that he is in easing mode (Beginning of the year) the market and EMC are up big. The overall trend is up regardless if the nasdaq drops 100+ points on any given day.
Take a look what has happened in the trend since he changed direction...
Thanks, SSFE1. IMHO, the NAZ lost over 50%, in part, to Greenspan's overzealous rate hikes. With each rate hike, caused a poor day on the market. But, the long picture, shows earnings hit on all sectors(tech, Internet, retail, etc.) I'm really surprised that with this rate cut that stocks are not taking off; in fact the stocks are acting as though Greenspan just raised rates!! Illogical to me, but that's the market, I guess.