We finished the day well in the red but the bleeding was in nearly as bad as the day has started out. The Dow for example climbed back from more than 450-points initial drop thanks to a large part surprise emergency three-quarter point interest rate cut. The Dow closed down 128-points but below 12,000 for the first time since the fall of 2006, the S&P 500 ended the day 15-points lower and the Nasdaq lost 48-points.

So while the debate has already begun over whether the Fed will cut rates again and if so by how much when it meets next week. Washington is not standing idly by President Bush is working with Congress already to get a USD 150 billion economic stimulus package implemented as soon as possible.

The bright spot in the American stock markets were the financials and retailers, investors bet business will pick up for those beaten down sectors as because the banks were presumably been loaning out more money and Americans will be buying more stock with that cash. While Coveat …Bank, Bank of America, Wells Fargo and Washington Mutual all among the bank stocks that rallied Wal-Mart, Target, COSCO, Macy’s caused home depot and the bed bath and beyond all on the shopping list of investors who were venturing back into retail.

Meantime in the energy markets, oil closed at a one-month low just under 90 bucks a barrel on fears of economy’s slowdown will affect demand for gas. Intra-day though the price has slipped as low as USD 86/bbl and changed before the market rebounded.