Stocks Fall Despite Surprise Fed Rate Cut

U.S. stocks spiked, then erased the entirety of a brief rally Tuesday after the Federal Reserve cut interest rates in a move meant to cushion the economy against economic disruptions due to the coronavirus epidemic.

Markets were volatile after the Fed’s announcement. Stocks initially shot higher, propelling the Dow Jones Industrial average up more than 300 points. But within 15 minutes, the whole rally had faded, with the blue-chip average recently down 136 points, or 0.5%, to 26577.

The S&P 500 and Nasdaq Composite were both down 0.2%.

The Fed’s...