Stocks surge then pare gains in volatile trading following the Fed's super-sized rate cut: Live updates

in a half-point percentage move, a bigger move than many traders had hoped for but one that also raised concerns about the state of the economy.was up more than 375 points before paring that gain. It was last up about 250 points, or 0.6%. TheThe Fed lowered its overnight lending rate to a range of 4.75%-5% from 5.25%-5.5%. The magnitude of the rate cut came in-line with traders' expectations, according to the CME Group's FedWatch tool.

"In this context, we believe equity gains will broaden, with continued potential for growth stocks, particularly in the technology sector, to rise further," Belski said in a Wednesday note."In addition, while Fed rate cuts in non-recessionary periods have historically been favorable for equities overall, they also make growth stocks more attractive, as lower rates increase the present value of these companies' future cash flows.

As the dollar weakened against the yen in the lead-up to the Federal Reserve rate cut announcement Wednesday afternoon, further dollar-yen volatility could be on hand this week when the Bank of Japan starts its two-day policy meeting Thursday. However, the economic data following the rate cut may matter more than the rate cuts themselves, Cau added. In a no-recession scenario, markets typically remain muted before rising by mid-teen percentages in the following 12 months, per the strategist."It can take two to three quarters for economic growth to rebound after the first cut, so we won't know for sure whether a recession is avoided or not for some time.

"A 50 basis point cut is slightly supportive of the oil market since it translates into a weaker dollar and stronger prices for dollar denominated commodities," Lipow said. "There are some viewpoints that it doesn't matter if they go 25 or 50, as long as the dot plot shows 100bps by year-end," BTIG analyst Jonathan Krinsky said in a Tuesday note."We tend to agree with that, but also think the setup for a 'false breakout' remains high regardless of meeting. It's also highly unusual to be this close to a meeting with this much uncertainty."hit a marginal new all-time high on Tuesday before pulling back.

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