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Stocks surge after Fed rate cut

Wall Street jumps as investors welcome news that central bank cut rates, as expected, and indicated its rate-cutting campaign could soon take a breather.

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NEW YORK (CNNMoney.com) -- Stocks rallied Wednesday afternoon, with the Dow briefly crossing 13,000 after the Federal Reserve cut a key short-term interest rate by a quarter-percentage point, as expected, and signaled it may soon pause its rate-cutting campaign.

Around 5 minutes after the roughly 2:15 p.m. ET announcement, the Dow Jones industrial average (INDU) had added 1.29%. The broader Standard & Poor's 500 (SPX) index gained 0.8% and the Nasdaq composite (COMP) gained 0.8%.

The Federal Reserve cut the fed funds rate, a key overnight bank lending rate, by a quarter-percentage point to 2%, as expected. In its closely-watched statement, the central bank indicated that its rate-cutting campaign could soon take a breather.

Stocks rose ahead of the Fed announcement, as investors eyed readings on first-quarter GDP growth, April private sector employment and earnings from General Motors and Procter & Gamble. To top of page

Features
Markets Last Change
Dow Jones 10,226.94 203.52 / 2.03%
Nasdaq 2,154.06 41.62 / 1.97%
S&P 500 1,093.08 23.78 / 2.22%
10-year Bond 101 4/32 Yield: 3.48%
U.S.Dollar 1 euro = $1.499 -0.001
November 9, 2009 4:03 PM ET
CompanyPrice% Change
Sprint Nextel Corp 3.28 15.09%
Radioshack Corp 20.23 14.04%
TRW Automotive Holdings Corp 22.95 11.46%
Unisys Corp 33.82 9.13%
Nov 9 3:53pm ET †
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