Dow Ends 150 Higher on Fed's Plans to Buy Corporate Bonds
Stocks ended higher Monday, recovering from losses, after the Federal Reserve said it would begin buying individual corporate bonds.
The Dow Jones Industrial Average finished up 157 points, or 0.62%, to 25,763, the S&P 500 gained 0.83% and the Nasdaq rose 1.43%.
At one point during Monday's trading, the Dow industrials were down almost 3%.
The U.S. central bank will purchase the bonds under its Secondary Market Corporate Credit Facility, an emergency lending program, using an indexed approach.
"This index is made up of all the bonds in the secondary market that have been issued by U.S. companies that satisfy the facility's minimum rating, maximum maturity and other criteria," the Fed said in a statement Monday.
"This indexing approach will complement the facility's current purchases of exchange-traded funds."
Federal Reserve Chairman Jerome Powell has stated on more than one occasion that the Fed would use all its tools to support the U.S. economy.