Stocks whipsaw after Fed cuts rates to counter virus effects

What is a stock market correction?

NEW YORK (AP) — Stocks whipped up and down Tuesday after the Federal Reserve swooped into the market with an emergency interest-rate cut in hopes of shielding the economy from the effects of the fast-spreading virus outbreak.

Major indexes shot higher after the surprise announcement, the first time the Fed cut rates outside of a regularly scheduled meeting since the financial crisis. The gains evaporated within 15 minutes, then indexes bounced higher, then lower. By late morning they were down 1%. The Dow surged 5% Monday in anticipation of moves by the Fed and other central banks to support the global economy following the worst week for stocks since 2008.

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