If you recall, the markets declined by about 5% in May and then again in August due in part to the possibility of the fed reducing its bond buying program.
And then yesterday happened – the Fed went ahead and started to taper the bond buying program.
Based on the past, you would think the markets would have declined, right? Wrong. They surged upon hearing the news.
USA Today has a brief article that outlines five reasons why the markets reacted positively to the news.