After Rate Cut, Stocks Rise but Dollar Falls24.09.2007 00:01 BusinessThe Federal Reserve finally cut its benchmark short-term interest rate, and the stock market celebrated, racking up big weekly gains, but in the currency markets, the dollar declined sharply. The Fed cut the fed funds rate, its main short-term rate, by half a percentage point, to 4.75 percent, on Tuesday, and stocks rocketed upward in the United States and most markets overseas. The Dow Jones industrial average had its best daily performance in five years, and stocks rallied for much of the week. But the dollar weakened against other currencies. The euro was worth more than $1.40 for the first time and the Canadian dollar reached parity with the dollar for the first time since 1976. The prices of gold and oil also rose. For the week, the Dow gained 377.67 points, or 2.8 percent, to close at 13,820.19. The Standard & Poor’s 500-stock index rose 41.5 points, or 2.8 percent, to close at 1,525.75. The Nasdaq composite index climbed 69.04 points, or 2.7 percent, to close at 2,671.22. The yield on the 10-year Treasury note rose to 4.62 percent from 4.46 percent the previous week. JEFF SOMMER Source: www.nytimes.comwww.alllee.com |
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