28 June 2001, 12:48 US Stocks Frozen After FOMC Decision
U.S. shares showed little reaction to a quarter-point interest rate cut by the Federal Reserve Wednesday, as disappointment over its size was balanced by
expectations for inter-meeting rate relief should the outlook for
corporate profits continue to weaken. The Nasdaq Composite ended up
10.12 at 2074.74, nearly unchanged from its level just prior to the
Fed's 2:15 p.m. ET announcement. The Dow Industrials ended down 37.64 at
10,434.84, about 50 points lower following the announcement. Across the
country, commercial banks announced a cut in their prime rate following
the FOMC announcement, to 6.75% from 7%.
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