Stocks Ended Higher after Fed Expanded Stimulus

U.S. stocks erased earlier losses and ended higher on Monday, after the Federal Reserve said it would begin purchasing individual corporate bonds as part of its emerging lending program to inject liquidity into the virus-stricken economy. The Dow Jones Industrial Average rose 157.62 points, or 0.62%, to 25,763.16. The S&P 500 gained 25.28 points, or 0.83%, to 3,066.59. The Nasdaq Composite jumped 137.21 points, or 1.43%, to 9,726.02.

Oil futures gave up earlier losses to settle higher Monday, buoyed by declines in global crude production. West Texas Intermediate crude for July delivery tacked on 86 cents, or 2.4%, to settle at $37.12 a barrel. Brent oil for August delivery rose 99 cents, or 2.6%, at $39.72 a barrel.

The Federal Reserve said Monday it will expand its efforts to backstop the corporate debt market by purchasing a “broad, diversified market index” of U.S. corporate bonds in the secondary market.