Lot of back scratching on that also. Good reason the trading desks at banks have been so profitable
Yes,
Federal Reserve overnight repo operations (and reverse repos) indirectly impact the stock market by managing liquidity and short-term interest rates, influencing banks' lending and investment decisions, though the direct transactions involve U.S. Treasuries and agency debt, not stocks, aiming to keep money markets stable and guide broader rates. When the Fed injects cash via repos, it adds reserves to banks, potentially lowering funding costs, while reverse repos drain cash, tightening liquidity and putting upward pressure on rates, both affecting the overall financial environment where stocks trade.