5 days NASDAQ; What made it rally yesterday ? Reddit      

Okay on the 13th of October, we had FOMC minutes.Inflation data came out as well.

FOMC pretty much vouched for the earlier tapering decision and inflation data wasn’t all that great either (heck it increased).

Please correct me if I am wrong; would like to learn more.

Tapering would result in interest rates going up. This would cause returns for bonds to be much higher than it currently is and thus will cause a switch over of investors from stocks to the much more attractive bonds.

Inflation at our current levels isn’t all that great for the economy either is it ? The spending power of people drops with inflation does it not (since they won’t be able to buy as much as they were able to before)….They will focus on spending more on necessities rather than luxury goods (which most of tech falls under).

If it’s the case as illustrated above, should nasdaq be red or struggling to keep green? Is this what is referred to as bullish trap ?

submitted by /u/Constant_Home_9464
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