Following China's rate cut overnight, the Dow saw gains of 442 points earlier Tuesday. In the last hour of trading we saw a 500-point swing in the Dow as the markets saw a massive selloff, pushing the S&P 500 back into corrective territory.
All three major indices closed lower for a sixth straight day, falling more than 1%. The Dow fell 205 points, as the S&P closed lower by 25 points. The Nasdaq fell nearly 20 points Tuesday. It was the longest losing streak for the S&P and Nasdaq in more than three years.
One bright spot in Tuesday's market was oil. After hitting $38 per barrel Monday, oil saw a bit of a recovery Tuesday, jumping 2.8% or $1.07 to close at $39.31 per barrel. Has oil hit bottom and is set to rise or will Tuesday's late-day selloff put pressure on the commodity?
Here's what hasn't changed -- China. China will be the key once again over the next day. How will the Chinese markets react and will the People's Bank of China, their version of the Federal Reserve, make any moves to cushion the blows that market has felt? That may very well set the tone for our markets on Wednesday.