It was no trick -- the Fed gave the market a long-awaited treat.
The Federal Open Market Committee decided to cut the Fed funds rate by 25 basis points, enough for all of the major indexes to rebound from earlier lows and finish higher.
Oil prices rallied, rising more than $4 a barrel to a record Nymex close of 94.53 per barrel. Some analysts forecast that geopolitical issues will continue to add strain on oil.
“On the long term, we have very strong global demand and supply is racing to keep up,” said Sara Banaszak, senior economist at the American Petroleum Institute.
Meeting global demand is creating bumps in the road and adding pressure to the price of oil, Banaszak added.
“Those bumps are related to production to meet the supply side, political unrest and instability, where supply is trying to expand, including western Africa,” said Banaszak
Some of today’s winners were Newmont Mining, which rose almost 10 percent to finish at $50.90 on news that the company's third-quarter profit doubled with the help of higher gold prices.
Other gainers included Intel, which gained 2.4 percent, Jones Apparel Group, a gainer of 6.29 percent, and General Motors, which rose 2.54 percent.
Pharmaceutical maker GPC Biotech reported setbacks concerning the effectiveness of its prostate cancer drug, sending stock prices down 58 percent to close at $4.79.
Other stock losers included Target, which shed2.37 percent to $61.36, and Garmin, which lose 11 percent to finish at $107.40.
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