The Dow Jones Industrial Average jumped 157.62 points, or 0.62 percent, to 25,763.16. The S&P 500 increased 25.28 points, or 0.83 percent, to 3,066.59. The Nasdaq Composite Index rose 137.21 points, or 1.43 percent, to 9,726.02.
The three major averages traded sharply lower earlier the day, with the Dow plunging more than 760 points.
All the 11 primary S&P 500 sectors ended higher, with financials up 1.38 percent, outpacing the rest.
The moves came as the U.S. central bank unveiled further measures to support the market amid the COVID-19 pandemic.
The Fed on Monday announced updates to the Secondary Market Corporate Credit Facility, which will begin buying a broad and diversified portfolio of corporate bonds to support market liquidity and the availability of credit for large employers.
For the week ending Friday, the Dow shed 5.6 percent, S&P 500 slipped 4.8 percent and the Nasdaq pulled back 2.3 percent, notching their worst week since March 20.
Latest comments