NEW YORK (AP) - Stocks rallied Tuesday as investors, relieved by better-than-expected results from Lehman Brothers and Goldman Sachs, also anticipated a massive interest rate cut from the Federal Reserve. The Dow Jones industrial average surged more than 200 points.

A rate cut from the Fed would come just two days after the central bank relaxed its lending practices to try to revive stagnant credit markets and also backed JPMorgan Chase & Co.'s buyout of failing investment bank Bear Stearns Cos. The Fed was holding a regularly scheduled meeting and was expected to announce its decision at 2:15 p.m. EDT.

The stock market's tone Tuesday was significantly more upbeat than it has been in recent days, in part because two rivals of Bear Stearns _ Lehman Brothers Inc. and Goldman Sachs Group Inc. _ both posted quarterly profits that were significantly lower than they were a year ago, but higher than analysts predicted.