Reply #79: US stocks up sharply on aggresssive Fed move

[Ghost Dog]

NEW YORK, Jan 30 (Reuters) - Wall Street stocks climbed sharply on Wednesday after the U.S. Federal Reserve made an aggressive half-percentage-point cut in key interest rates in a move to bolster a U.S. economy that staggered toward recession at year end.

The dollar fell sharply, and key commodities recovered from early declines. U.S. Treasury bonds cut earlier losses.

Before the Fed decision, traders were evenly split over whether the central bank would cut benchmark U.S. rates by half a percentage point or a quarter point in its two-day policy meeting.

In trading just after the cut, the Dow Jones industrial average .DJI was up 78.04 points, or 0.63 percent, at 12,558.34. The Standard & Poor's 500 Index .SPX was up 9.02 points, or 0.66 percent, at 1,371.32. The Nasdaq Composite Index .IXIC was up 15.08 points, or 0.64 percent, at 2,373.14.

/... http://www.reuters.com/article/marketsNews/idINN3022721420080130?rpc=611