Fed Announces Tapering in Bond Buying Program--Wall Street Gains

The Federal Reserve announced a $10 billion reduction in its bond-buying program to $75 billion a month down from $85 billion a month. Wall Street reacted favorably by gaining 1.5%. The Dow was up 234 points (1.5%); the S&P 500 was up 24 points (1.4%).

Here is the long awaited announcement of "tapering" that many posters on BB had predicted would result in a big dip in the stock market. Many posters here have stated that if the Federal Reserve were to quit the bond buying program the stock market would crash and the economy would collapse. Predictions of the DJIA dropping to 5,000 were made. :tonofbricks:

 

I agree. I was expecting a little pullback after the announcement, perhaps 1%-2% in the indexes; pretty shocked that a new all time high was set on the DJIA.

I'd be surprised if the market didn't drop a bit on Thursday and Friday.