U.S. equity markets marched higher closing with gains on Monday after the Federal Reserve announced plans to buy individual corporate bonds, building on a rally that began after investors shrugged off a resurgence in new COVID-19 infections.

The Dow Jones Industrial Average rose over 157 points or 0.62 percent, with the Dow battling back from a loss of more than  762 points, or 2.98 percent earlier in the session. The S&P 500 rose 0.83 percent while the Nasdaq Composite rose 1.43 percent, both also reversed morning losses.

Stocks are coming off the worst week for in three months, which saw the benchmark S&P 500 shed 4.78 percent.

The Fed's announcement is viewed by traders as an additional stimulus to the markets and is part of the CARES Act, which was established to help American families and businesses throughout the coronavirus pandemic.

A new outbreak in Beijing, which forced parts of the Chinese capital into lockdown, rattled markets overnight. In the U.S., Florida and Texas are among the states that have seen a spike in the number of infections. Read more at FOX Business