Prices increased sharply even before the Fed announced its 75 basis points cut, and then, after some hesitation, they moved even higher. The S&P500 closed up 4.2 percent, thus scoring the highest gain on the announcement day since its 5.0 percent rise in January 2001.
The NASDASQ also moved up 4.2 percent; this was its third largest response to a fed funds fall. While the DJIA rose just 3.5 percent today, nevertheless this also was its third largest reaction to this Federal Reserve policy move.
Stocks do not rise automatically to reductions in the fed funds rate; indeed, since 2000, both the DJIA and the S&P500 have an equal number of up and down changes, whereas the NASDAQ has ten increases to its eight declines.
DJIA 3.51 percent
NASDAQ 4.19 percent
S&P500 4.24 percent