Coming alongside encouraging earnings from tech giants IBM and Intel, the Fed's move dispelled the gloom that has haunted the markets all year. The Dow galloped 5 percent higher in the two days following the cut and the Nasdaq rebounded even more, moving up 13 percent. The Fed surprised everyone with interest rate cuts. For many, that raised grave economic questions. After the market euphoria fades, Wall Street may find bearishness prevailing.
Investor sentiment can turn on a dime, but turning around an economy is a lot more complicated.
Nowhere has the search for a bottom been more frantic than in the semiconductor industry, which, it is commonly believed, will lead tech's recovery from a downturn. The Philadelphia Semiconductor index has risen 44 percent since April 9, a jump that may be too enthusiastic given that few analysts see a strong recovery for the next several quarters. A number of high-profile companies posted mixed earnings last week, giving even more ammunition to both bulls and bears. Intel posted a first-quarter profit of 16 cents a share, beating Wall Street analysts' estimates by a penny. Other companies still had plenty of bad news to dole out last week.