Wall Street rises after Fed cuts interest rates

Published: Wednesday, January 30, 2008 at 2:21 p.m.
Last Modified: Wednesday, January 30, 2008 at 2:21 p.m.

NEW YORK - Wall Street surged higher Wednesday after the Federal Reserve cut interest rates half a percentage point, as expected.

The stock market had been banking on another rate reduction after the central bank's steep three-quarter-point cut in the target fed funds rate a week ago. The only uncertainty in investors' minds was whether the Fed would lower the rate by a sizable half point or a more cautious quarter point.

In the minutes just after the Fed decision, the Dow Jones industrial average rose 76.33, or 0.61 percent, to 12,556.63, after rising 273 over Monday and Tuesday.

Broader stock indicators also rose. The Standard & Poor's 500 index rose 7.45, or 0.55 percent, to 1,369.75, while the Nasdaq composite index rose 10.50, or 0.45 percent, to 2,368.56.

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