NEW YORK (TheBlaze/AP) – U.S. stocks are closing lower Tuesday after falling sharply in the final hour of trading.
Stocks surged early in the day, rebounding from a big sell-off on Monday after the Chinese central bank said it was cutting interest rates to shore up its economy.
Specialists Peter Kennedy and Michael Gagliano, foreground left and right, work at their posts on the floor of the New York Stock Exchange, Thursday, Oct. 10, 2013. Stocks are rising sharply in early trading on Wall Street following hopeful signs that a budget impasse in Washington may break soon. (Credit: AP)
However, investor confidence remains fragile after a series of big drops in recent days and the market suffered a dramatic reversal in the final hour of trading.
The Dow Jones industrial average fell 204.78, or 1.3 percent, to 15,666.44 The Standard & Poor's 500 index dropped 25.60 points, or 1.4 percent, to 1,867.62. The Nasdaq composite dropped 19.76 points, or 0.4 percent, to 4,506.49.
BREAKING: Dow closes down more than 200 points pic.twitter.com/VmIQPpM7FA— TheBlazeNOW (@TheBlazeNOW) August 25, 2015
Treasury bonds fell, pushing up the yield on the benchmark 10-year note to 2.09 percent.
The decline came just one day after Wall Street investors were sent into a panic as stocks tumbled by more than 1,000 points at open on Monday. Shares rebounded throughout the rest of the morning and afternoon, but the Dow still closed more than 588 points lower.
The economic unease was triggered by traders rushing to sell in response to fears over an economic downturn in China, the world's second largest economy.