Stocks Soar on Fed Surprise

The markets responded with a roar to the Fed’s surprisingly deep rate cut today, with financial shares enjoying the biggest spike. The Dow climbed a whopping 324.10 points to 13,727.52, the Nasdaq rose 64.38 to 2,646.23, and the S&P closed at 1518.21, up 41.56. "The stock market is surging," a top economist told the Journal. "Everyone loves it."

Even housing stocks surged on the benchmark rate news, signaling hopes that easier borrowing will lower pressure on the troubled sector. Meanwhile, producer prices fell 1.4% in August, Reuters says, a surprising drop that lessens inflation concerns even though oil prices hit record heights. Overseas, the dollar hit a record low versus the euro after the Fed acted. (More stock market stories.)