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Already Baked In?

As the Dow and S&P 500 jumped 2% this week ahead of next week’s Fed meeting, is it possible the market already got the rate cut rally it has been jonesing for? Futures traders believe with certainly the Fed will cut the target rate at least 5%, but will it even matter for equities?

Guy Adami reiterated his point about the importance of the 1490 level on the S&P 500. He thinks this rate cut has been baked into not just the stock market, but gold and crude oil prices as well.

Karen Finerman doesn’t think it’s a “baked cake” just yet. She points to the volatility index, which indicates that there is plenty of action to be had on the heels of Tuesday’s meeting.

The core point is build in, Pete Najarian said. A 50 point cut will signal panic, he said. But a 25 point cut would be “perfect.”

Jeff Macke is giving Bernanke the benefit of the doubt. He inherited a difficult situation from Greenspan, Jeff said, and he thinks the bears are starting to getting cocky.

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Trader disclosure: On Sept. 14, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders: Macke Owns (INTC), (SWY); Najarian owns (CREE), (GS); Finerman’s Firm Owns S&P 500 Puts, Russell 2000 Puts, (BEAS), (ASD), Is Short (LEAP); Finerman’s Firm and Finerman Own (HD)