The market panicked over nothing

So I went to walk my dog today, came back and found that the Nasdaq fell 37 points. I wanted to find out immediately why, so I checked Bloomberg.

Are you serious? People are selling because the Fed says it won't lower rates anymore. Isn't 2% low enough?

What I don't understand is what people are think that a lower rate is going to accomplish for the stocks they are investing in. Your company couldn't get a loan out at 2%, but it could when rates are 1.75% are 1.5%? I understand that Fed target rates have an effect on the economy, but when they are getting this low, I don't see how they are going to make a difference.

Not to mention the biggest problem with our economy right now, inflation. Consumer's are cutting back spending because $4 a gallon gas and high food prices. A weak dollar isn't going to help that at all.

I'm am sticking to my theory that Wall Street is full of a bunch of idiots, who believe that Fed cuts are the magical panacea to the market's problems. They only sold because conventional wisdom tells them that no Fed cuts are bad for the market, that's it.