Wall Street closed slightly higher Monday after sharp losses earlier in the day following the Federal Reserve’s announcement that it will start buying corporate bonds.
The Dow Jones Industrial Average was up 157 points, closing a fraction higher. The S&P 500 was also a fraction higher, and the Nasdaq was up more than 1%.
The Dow was off 760 points at one point Monday, while the Nasdaq and S&P 500 were both 2% lower. But all three indexes bounced back after the Federal Reserve made its announcement regarding corporate bonds.
Such a move pumps more money into the economy and makes more credit available to large companies.
The Fed also on Monday launched its Main Street Lending Program, aimed at helping small and medium-sized businesses hurt by the coronavirus outbreak.
Major European indexes in London, Frankfurt and Paris were all down a fraction Monday while major Asian indexes suffered big losses.
Tokyo’s Nikkei lost 3%. The Kospi in Seoul was down nearly 5%, losing a staggering 4.7% at the closing. Hong Kong and Sydney were both down 2%.