NEW YORK, Oct. 7 (Xinhua) -- Wall Street opened higher Tuesday following the previous sell-off, after the Federal Reserve said it would purchase short-term corporate loans to help free credit markets.
The Fed announced a radical plan to buy massive amounts of short-term debts. Accordingly, the central bank will buy "commercial paper," a short-term financing mechanism that many companies rely on to finance their day-to-day operations.
Investors calling for an interest rate cut were relieved after the Fed's new steps, hoping it will resume liquidity on the credit market.
In corporate news, Bank of America Corp. fell over 3 percent in early trading after reporting late Monday that profits fell 68 percent during the third quarter. The bank also said it will raise10 billion U.S. dollars by issuing common stock and slashed its dividend.
Chip maker Advanced Micro Devices Inc. surged 29 percent after it announced to spin off its manufacturing businesses into a new joint venture with Abu Dhabi-backed Advanced Technology Investment Co.
The Dow Jones rose 81.72 to 10,037.22. Broader indexes also climbed. The Standard & Poor's 500 index rose 5.97 to 1,062.86, and the Nasdaq advanced 7.83 to 1,901.38.
