Stock Market Recap

International Stocks fell for the second day. I was expecting a huge sell off in US stocks. Stocks open with huge losses. DOW was down 465 points at market open.

India's Sensex was down again with huge losses and the trading stopped twice. See the graph. All the 10 big losses are since 2006 and most of them are in 2007 when the market rallied to more than 22,000 points.

I was kind of expecting this reaction from the US stock market given the two days of huge losses in the overseas markets.

Most surprising news for today?: Fed cuts interest rate to 3.5% from 4.25%. That's .75 basis points. That's huge. That made the difference to calm the nerves of the investors and the DOW closed with just 128 point loss.

What a day!