Big global investors are on alert for wild market swings after a jumbo U.S. rate cut sparked confusion over whether the world's dominant economy is set to boom or face recession, muddling prospects for stocks,

The Federal Reserve kicked off its campaign to lower interest rates with a larger-than-typical half percentage-point cut, while the Bank of England decided against a second consecutive reduction.

In a closely watched decision this past Wednesday, the Federal Reserve opted for a bigger-than-usual 50-basis point rate cut. While rate cuts of that size are typically reserved for periods of economic crisis,

For months, investors have been bracing for a shift in the Federal Reserve's monetary policy, anticipating loosening interest rates to counter potential economic headwinds. But the recent rate cut, a dramatic 50 basis point reduction,