Fed ignites a late Wall Street rally

A choppy session on Wall Street Monday as the Federal Reserve once again comes to the rescue.

The central bank gave sagging investor sentiment a shot in the arm when it announced it would expand its corporate bond-buying program to include individual company debt.

The Dow jumped 157 points after being down by as much as 760 points earlier in the session. The S&P 500 and the Nasdaq also ditched losses to finish the day higher.

To investors, like Jim Golan, co-portfolio manager at the William Blair Large Cap Growth Fund , it makes sense the market would turnaround on the Fed. Stocks had been in the dumps Monday because of a spike in new COVD19 cases in China and the U.S.

"The Federal Reserve and the federal government are doing so much to get the economy going. And in I think in that background it remains a favorable environment for risk assets. I think we can grind higher for the course of the year. The economy continues to improve as things start to reopen. Obviously the big issue is the COVID virus and a second wave. I think we're better prepared for that."

Biotech stocks benefitted from optimism a vaccine will come sooner rather than later. Drugmaker Moderna surged 7 percent with the Israelis reportedly in advanced talks to buy that company's coronavirus vaccine.

It was a volatile day for Walmart. The world's largest retailer announced a partnership that opens up Walmart.com to listings posted on e-commerce company Shopify. The two will work this year on integrating the shopping experience. Walmart ended higher in the end and Shopify surged more than 8 percent.