The Federal Reserve slashed interest rates sharply, and the market felt cold for the first time. It may just be the calm before the storm

Investors had expected the markets to wobble in the wake of the Federal Reserve's sharp interest rate cut, but what they saw was a calm market. However, that calm could quickly dissipate. "I don't think this calm will last long," said Brian Jacobsen, chief economist at Annex Wealth Management, noting that a reversal in equities late that night could indicate that stocks are expected to be weak, "unless we get some data that gives a clear sense of direction." Mr. Jacobsen said the market would be watching upcoming data, such as Thursday's initial jobless claims. "The Fed is clearly in catch-up mode and trying to make up for lost time with the rate cuts it just implemented," Mr. Jacobsen said.