AP Business Writer Matthew Craft

The Standard & Poor's 500 index, a broader measure of the stock market, and the Nasdaq composite, which is more heavily weighted with research stocks, both fell more than 3 percent for the day.

The central bank hopes that allowing people

The central bank hopes that allowing people and businesses to borrow money more cheaply will encourage them to spend it throughout the economy, providing a lift that could turn it around.

Economists say the Fed action may help, however probably not much. The only thing that will help is for people and businesses to start spending more money, said Uri Landesman, president of Platinum Partners, a hedge fund.

AP Economics Writers Martin Crutsinger, Christopher S. Rugaber and Paul Wiseman in Washington and AP Business Writer Matthew Craft in New York contributed to this report.