early Tuesday Jan 22, 2008 after the Federal Reserve unexpectedly slashed a key interest rate amid growing fears of a U.S. economic slowdown.
The central bank lowered the federal funds rate from 4.25 to 3.5 percent, its biggest one-day move since 1991, and signaled further cuts were likely. But traders seemed unconvinced that the Fed's surprise cut, which followed a worldwide stock sell-off, would be enough to forestall a U.S. recession.
Bank of America (BAC, Fortune 500), which reported quarterly earnings that missed estimates Tuesday, and JP Morgan (JPM, Fortune 500) both rose nearly 5 percent in early action. Shares of Wells Fargo (WFC, Fortune 500) and Wachovia (WB, Fortune 500) were up more than 7 percent.
