U.S. Markets Fall Despite Global Rate Cut

New York, NY (AHN) - U.S. markets failed to rally on news the Federal Reserve made an emergency half point rate cut, dropping the federal funds rate to 1.5 percent. All three major indices finished lower for the sixth consecutive session.

The last time all three major indices were down six consecutive sessions was 1991. The markets were trading positive late in the day, but a hard sell-off in the last hour of trading sent the averages negative.

The Dow Jones Industrial average fell 190 points or 2 percent. 24 of 30 Dow components finished Wednesday lower. Alcoa, down 12 percent was the biggest Dow laggard. The aluminum giant reported disappointing third quarter earnings Tuesday after the bell.

The S&P 500 fell 11 points or 1.1 percent. The financial sector weighed on the S&P, falling 3 percent as it gave up gains of 3.9 percent late in the session. Retail stocks also fell as weak September same-store sales were reported by the likes of Target and JC Penney. Eight of 10 major economic sectors finished lower on Wednesday.

Tech held up a bit better with the Nasdaq Composite down a modest 14 points or 0.8 percent. Shares of Research in Motion rebounded 4.6 percent as they launched their new touch-screen blackberry phone on Wednesday.

Crude oil prices hit the 2008 low, falling $1.11 a barrel to $88.95. The commodity was pressured by the latest inventories data, which showed a much larger build in oil reserves than expected. The data further proved that demand has fallen in recent weeks.

As for other economic news, the Federal Reserve was just one of six central banks to cut rates half a percent. The Swiss National Bank, Bank of England, Bank of Canada, European Central Bank and Sweden's central bank all made the move.

On the corporate earnings front, Monsanto saw its shares rise 9.8 percent after the agricultural company reported a smaller loss than expected. Wholesale retailer Costco reported a rise in fiscal fourth quarter earnings, but fell short of analyst estimates.

Thursday's session will see the release of initial unemployment claims for the week ending Oct 4.