New York: Wall Street jumped 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 abruptly reversed earlier 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."It makes sense that we'd rally (following the Fed announcement)," said Oliver Pursche, president and CIO of Bronson Meadows Capital Management in Fairfield, Connecticut. "But the market is probably overshot, considering what the reaction should be.""To a large extent it was.