US Stocks Recover After Monday’s Selloff

Investors are recovering from Monday’s dramatic global stock selloff.
U.S. stocks started Tuesday with small gains and losses. The Dow was off 20 points, after gaining over 40 points at the open. The S&P 500 and Nasdaq were each down 0.1%.

European markets were also mostly up a little after China’s markets weathered a tough day. The Shanghai ended with a 0.3% loss Tuesday. The Chinese government tried to reassure investors Tuesday, announcing it had was pumping $20 billion into the financial system.

Tuesday’s modest start follows a brutal day for investors around the world. The dramatic declines globally were prompted by news that China’s factory production had been weaker than expected. The country’s main stock market in Shanghai actually halted trading after stocks fell 7%.

Investors read it as a sign that China’s economy might be slowing down faster than previously thought.

That grim news sent markets south. After European markets sold off, the Dow dropped as much as 467 points before recovering a little and ended the day off 276 points.

via CNN

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza