Fed soothes recovery worries

Wall Street closes higher

Wall Street closed higher on Monday following an announcement by the U.S. Federal Reserve regarding its corporate bond purchasing program that boosted investor confidence, which had been wavering amid a spike in new COVID-19 cases.

All three major U.S. stock indexes reversed losses in afternoon trading, following the Fed’s decision to apply an indexing approach to its secondary market corporate credit facility to create a more diversified portfolio.

“No doubt the market liked it: Who doesn’t like more cake and ice cream?” said Robert Pavlik, chief investment strategist, senior portfolio manager at SlateStone Wealth LLC in New York.

https://www.reuters.com/

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