A late afternoon rumor about an immediate cut in interest rates caused the market to soar from the depths Thursday, after the Dow Jones industrial average had flirted with official "bear market" territory.

Traders said a rumor reached the market in the last half hour of trading that the Federal Reserve was meeting to consider further and immediate cuts in interest rates to help boost the rapidly falling market. A Fed spokeswoman said no such meeting was taking place.

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.