The Federal Reserve Board cut a key interest rate to a 45-year low and offered a lackluster appraisal of the economy, dousing investors' enthusiasm and sending stocks lower.
The Federal Reserve Board threw a wet blanket over the stock markets Wednesday, suppressing investor enthusiasm with a lackluster appraisal of the economy and a quarter-of-a-point cut to the Fed Fund rate. That key rate is now 1%, its lowest level in 45 years.
As a result, trading in tech sectors was generally muted. Apple Computer (AAPL) rose 31 cents, or 1.7%, to $19.09; Cisco Systems (CSCO) rose 12 cents, or 0.7%, to $16.87; Motorola (MOT) rose 6 cents, or 0.6%, to $9.45; Dell Computer (DELL) fell 20 cents, or 0.6%, to $31.13; IBM (IBM) fell $1.14, or 1.4%, to $82.49; and Microsoft (MSFT) fell 44 cents, or 1.7%, to $25.26.
The major indexes all suffered minor losses. The Nasdaq index fell 0.2%, or 2.98 points, to 1,602.63, and the InformationWeek 100, which was basically unchanged, fell 0.02%, or 0.05 points, to 243.58. The Nasdaq-100 tracking stock fell 0.54%, or 16 cents, to $29.52, on volume of 93 million shares.
Less tech-heavy indexes fared even worse. The Dow fell 1.1%, or 98.32 points, to 9,011.53, and the S&P 500 fell 0.8%, or 8.14 points, to 975.31.
5 Top Federal Initiatives For 2015As InformationWeek Government readers were busy firming up their fiscal year 2015 budgets, we asked them to rate more than 30 IT initiatives in terms of importance and current leadership focus. No surprise, among more than 30 options, security is No. 1. After that, things get less predictable.