WALL STREET: Rally Round the Fed

The stock market had closed, and the streets of Manhattan's financial district were rain-soaked and half-deserted when word came of the Federal Reserve's decision to reduce its discount rate. Wall Street was caught completely by surprise, but it acted fast. West Coast markets were still open, and they were swamped with orders to buy. Stocks rose sharply on the Pacific Coast Stock Exchange, giving the San Francisco branch its busiest hour in 25 years.

Next morning the rush to buy on the New York Stock Exchange was so great that 1,270,000 shares...

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