Stocks slipped on Monday one day ahead of a key Federal Reserve policy meeting, as investors worried that the central bank wouldn't cut interest rates by as much as had been hoped. In economic news, the September Empire Manufacturing came in at 14.7, below expectations of 18.0. In corporate news, Microsoft (MSFT) suffered a big setback when an EU court dismissed the company's appeal of a 2004 antitrust ruling. Infospace (INSP) gained 31% on news that it will sell its online directory business to privately owned Idearc for $225 million. The DJIA dropped 0.29%, while the Nasdaq was down 0.79%.

Markets rallied into positive territory on Tuesday as investors welcomed easing monetary action from the FOMC. The Fed lowered its benchmark interest rate by 50 basis points, to 4.75% from 5.25%. In addition to cutting the fed funds rate, the Fed lowered the discount rate to 5.25% from 5.75%. In corporate news, shares of Best Buy Co (BBY) rose 6.56% after the specialty retailer posted better than-expected fiscal second quarter (ended August) earnings. Lehman Brothers (LEH) added 10.01% after the company's bottom-line fiscal third quarter (ended August) earnings came in above expectations. Kroger Co (KR) gained 7.66% after the company boosted its full year EPS outlook. The DJIA added 2.51%, while the Nasdaq rose 2.71%.

Equity markets finished higher on Wednesday following the FOMC rate cut and a tame inflation report. In economic news, the August consumer price index fell 0.1%, versus consensus of no change. The CPI excluding food and energy rose 0.2%, in line with consensus. August housing starts fell 2.6% to an annual rate of 1.331 million versus consensus of 1.35 million. August building permits fell 5.9% to an annual rate of 1.307 versus consensus of 1.348 million. In corporate news, TD Ameritrade (AMTD) rose 2.01% after the company said its earnings could top the high end of its $0.24–$0.32 EPS guidance for the fiscal fourth quarter (ending September) versus consensus of $0.30. Morgan Stanley (MS) fell 2.16% after the company reported fiscal third quarter (ended August) EPS of $1.38 (net $1.44) on revenue of $8.0 billion versus consensus of $1.55 and $8.42 billion, respectively. The DJIA added 0.55%, while the Nasdaq rose 0.56%.

U.S. stock markets were weaker on Thursday as investors reacted to earnings from troubled Wall Street firms and testimony from Federal Reserve Chairman Ben Bernanke. In economic news, initial jobless claims for the week ended September 15 came in at 311,000, lower than the Wall Street estimate of 321,000. In corporate news, Goldman Sachs (GS) said it was challenged by a tough credit market, but nonetheless posted a rise in earnings and revenue. Shares dropped 0.96%. Nasdaq Stock Market (NDAQ) and Borse Dubai announced that they had reached a deal under which Borse Dubai will acquire just under 20% of Nasdaq and 28% of the London Stock Exchange (LSE.L), while Nasdaq will take over Nordic bourse operator OMX AB (OMX). The DJIA fell 0.35%, while the Nasdaq lost 0.46%.

Equity markets finished the week in positive territory, as the Federal Reserve encouraged investors by easing its benchmark interest rate 50 basis points, to 4.75% from 5.25%. For the week ended September 20, the DJIA, S&P, and Nasdaq rose 2.41%, 2.32%, and 2.00%, respectively.