Dow soars 335, Nasdaq 70 after Fed surprises with half-point cut

CBS News

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[Music] Investors return to Wall Street after a larger thanex expected interest rate cut by the Fed sent stocks skyrocketing. The Dow Industrial soared 335 points. The Nasdaq Composite rocketed 70 points. The Fed, in a surprise move, decided to cut interest rates a more aggressive half a percentage point. Many were banking on a quarter percent drop in short-term rates. This is supposed to lend relief to an economy weighed down by the housing slump and credit crunch and also help bring relief to the millions of homeowners who are having trouble facing their monthly mortgage payments. Investors are also hoping that this rate cut is going to make it easier for Americans to get credit. It could also drive many people back into the real estate market, and that should be a big relief to home builders who have been struggling in recent months. We'll find out how they fared in August when we get the latest reports on building uh permits and housing starts. Investors will also be keeping one eye on the oil pits where crude oil soared above $82 a barrel in the last session. That is a record high. There is a belief that these lower interest rates will help spur the economy and also help spur demand for oil and gasoline. And that's your money watch. Be sure to check out all your today's money headlines by logging on to cbsnews.com. on Wall Street. I'm Alexis Christopherus.

Fed half-point cut lifts markets; housing starts hit 12-year low

CBS News

Transcript

[Music] the interest rate rally continued stocks were higher for a second day after the Federal Reserves bigger than expected interest rate cut DOW Industrials Rose 76 points the NASDAQ Composite added about 15 the FED hopes the half-point rate cut will get consumers spending again and bring some relief to the millions of Americans struggling to make their monthly mortgage payments looking for a new home you could soon find some big Bargains as Builders try to un a glut of unsold homes they're already scaling back new home construction which fell in August to the slowest Pace in 12 years and building permits which measure future construction were off about 6% meantime inflation remains under control consumer prices fell in August for the first time in 10 months as another big drop in energy costs offset Rising food prices and more disturbing details about this Summer's toy recalls new documents show Leed in the paint used on some of the Chinese made toys Mattel recalled was 80 times the amount Allowed by law some toy jewelry was almost 100% LED children who suck on or ingest toys with highl content may be poisoned which can lead to learning and behavior problems that's your money watch track the latest business headlines at cbsnews.com in New York I'm Alexis christopherus