The Federal Reserve Board's decision to cut the target federal funds rate by 50 basis points (see item below) proved good medicine for many ailing mortgage-related stocks Tuesday.Mortgage insurers saw the biggest gains, with Radian's share price climbing by $2.34, or 11.3%, to close at $22.98. PMI was up $2.95, or 10.0%, to close at $32.57. MGIC rose by $2.70, or 8.8%, to close at $33.50. And Triad Guaranty rose $1.28, or 7.8%, to close at $17.67. Lenders and secondary-market agencies also benefited, with Countrywide's shares rising by 3.2% and Washington Mutual's shares rising by 4.95% on the day. Fannie Mae was up 3.3% and Freddie Mac's share price rose by 5.25%. The broader market also posted its biggest one-day gain in more than four years on Tuesday, as the Dow Jones industrial average rose by 336 points, or 2.51%.
