In early trading on
Tuesday, the Dow gained more than 100 points, or
0.8%, at the opening bell. The S&P 500 and the Nasdaq both added nearly 1%.
After several straight days of losses, U.S. stock futures rose by more
than 0.5% overnight Monday. The market
saw another sell-off on Monday, driven by continued uncertainty
about China and when the Federal
Reserve will ease its stimulus. Because of this double dose of uncertainty,
volatility has spiked. In June, the CBOE Market Volatility Index (VIX) has risen by 25%.
The market drop this week has been reacting to China, where stocks have fallen on concerns about tighter credit conditions. But according
to a People's Bank of China official, the bank will reportedly keep interest
rates in check, which helped ease some jitters. Per the official, seasonal
forces that have driven rates higher recently should fade.
Following these comments, the Shanghai Composite, which was down as much as 5.6%, recovered to
close just 0.2% lower. Overall, Asian
markets ended with mixed results after a volatile day. The Hong
Kong Hang Seng also
dropped during the day, but closed with a 0.2% gain. The Nikkei in Japan ended with a 0.7%
loss.