"I wouldn't say we're done," said Ken Volpert, portfolio manager with Vanguard Funds.
"I think the 50 basis points recognizes that we have a weakening economy and there's a lot of uncertainty associated with the credit tightening that seems to have happened," he added.
Most analysts on Wall Street were expecting a quarter-point cut in the federal funds rate, which banks charge each other for overnight loans, and up to a half-point cut in the discount rate, which is what the Fed charges banks for loans.
But the Fed surprised many with a half-point cut in both rates.
"God Bless the greatest central bank in the world," said Jon Evans, CEO of Atlantic Central Bankers Bank. "This is great news for the economy and the consumer."
That doesn't mean the economy is out of the woods, however. Neimeth says the Fed will be paying close attention to the employment data for further signs of weakness in the jobs market. If that occurs, Neimeth believes the Fed would likely cut further.
Other experts agree that while Tuesday's cut was important, investors should be looking ahead to what happens in the economy and corporate earnings.
"We're going to be watching the performance in the markets, in particular mortgage-backed securities, asset-backed commercial paper and the financial stocks, very carefully," Hugh Johnson, chief investment officer at Johnson Illington Advisors, told CNBC.com. "We'll be watching for telltale signs that the crisis is passing and confidence is being restored."
"I think it's less important to look at today's announcement, but where the Fed is headed and where they're going for the rest of the year," said Andrew Schwarz, founder and manager of AGS Specialist.
Schwarz was encouraged by better-than-expected earnings from Lehman Brothers Holdings and he says analysts will be looking at performance from the big investment banks.