Traders got a jolt of optimism Friday morning when the Federal Reserve announced a half-percentage point cut in a key interest rate. The Fed’s action — dropping its discount rate on loans to banks to 5.75 percent — was the biggest move yet in the central bank’s efforts to restore calm. The stock market closed Friday with a large advance.

MSNBC reports.Traders got a jolt of optimism Friday morning when the Federal Reserve announced a half-percentage point cut in a key interest rate. The Fed’s action — dropping its discount rate on loans to banks to 5.75 percent — was the biggest move yet in the central bank’s efforts to restore calm. The stock market closed Friday with a large advance.

MSNBC reports.