Via CNN:
The Dow and the broader US stock market rebounded Tuesday, driven by optimism that currency tensions between the United States and China would ease.
The Dow (INDU) finished up 312 points, or 1.2%, while the S&P 500 (SPX) closed 1.3% higher. The tech-heavy Nasdaq Composite (COMP), which was hit worst in Monday’s selloff, closed up 1.4%.
For the S&P and the Nasdaq it is their first positive performance in seven days. The Dow is in the black for the first time in six days.Markets recovered from a terrible day on Monday, when Chinese government officials said they would take steps to keep its currency from falling too far.
China priced the yuan’s reference rate at 6.9683 to the dollar, a hair above the key 7:1 ratio to the US dollar. Although that was the weakest level for the yuan in 11 years, many Wall Street investors feared China would price the yuan below that psychological 7:1 barrier.
The yuan continued to slide Tuesday, but the pace of its decline slowed. One dollar last bought 7.0235 yuan in China, and 7.0530 yuan in the offshore market, where the currency trades more freely.