Gary Poster, with essential assists from Galyn Norwood, Phiroon Phihakendr, Jose Quijada, Pavandeep Kalra. The Fed rally is long gone, and stocks are crashing back to 2000 levels.
Economists call for more rate cuts.
It's an old Street maxim, and it's usually dead on. But the Fed's surprise interest-rate cut on Wednesday, which was meant to reignite economic growth, is proving worthless in the face of an onslaught of earnings warnings. On Friday, the Dow plunged 250 points to 10,662, and the Nasdaq cratered 159 to 2,408. In other words, despite Wednesday's historic rally, the indexes finished down for the week. Like it or not, there's also a psychological component.