It seems that financial stocks are taking the Fed rate cut the hardest, with the Select Sector SPDR Financial Fund (XLF) dropping sharply in the moments following the FOMC decision. At last check, the XLF was lower by nearly 1%, plunging from a gain of nearly 1% just prior to the announcement. At the forefront of the decline is Citigroup (C), which was last lower by more than 1%. Also falling on the session were Bank of America (BAC), which has shed 1%, and Bear Stearns (BSC), which plunged sharply but bounced back to a fractional gain.

Elsewhere, energy stocks held their gains on the session, edging higher following weaker-than-expected U.S. petroleum supplies. Furthermore, the December crude contract closed at yet another all-time high, jumping 4.57% to close at $94.50 per barrel. Against this backdrop, the Philadelphia Oil Services Index (OSX) rose 2%, the Amex Oil Index (XOI) rose 1.1%, and the Amex Natural Gas Index (XNG) rose 1.2%.

Surprisingly, the housing sector is holding up pretty well despite all the talk that a rate cut would not solve the sectors problems. The PHLX Housing Sector Index (HGX) has edged higher on the day, adding 0.25%. However, key housing stocks Beazer USA (BZH) and Hovnanian Enterprises (HOV) were last lower by about 3% each.