50 bp cut is actually going to be a negative in the medium term for stocks. In the short term, who knows, maybe some shorts will get squeezed out and dumb momo funds will buy at higher prices. The economy is going downhill, its something that is just getting started, and not reflected much in the current stock prices. Right now, the last thing the bulls needed was overenthusiasm over a big rate cut when the reality of the current environment is one that can't be fixed with just rate cuts. There are still too many homes, too many people in over there head in debt with ARM resets coming up. Look how low interest rates were in 2002 and the market still got crushed. Who knows what happens in the next few days, but the market will likely end lower this year once people calm down and face reality that Uncle Ben cannot save the market.