The Fed announced that they will likely start tapering later this month.
That was an announcement many already expected so that really came off as a no big deal situation. The markets do not like surprises and that clearly WASN’T a surprise.
They are still going to be pumping money into the economy, let’s not forget that. They will just be doing so at reductions of $15 billion each month — $10 billion in Treasury’s and $5 billion in mortgage-backed securities. They also said they will adjust that number as the data shows is needed.
They also said they will not make a decision on interest rates at this time…
All this resulted in the markets acting in a bullish fashion the remainder of the day. And near as one can tell the bull run can continue to run even longer.