It may be safe to wade back into stocks Tuesday. Officials in China, whose stock market woes have riled world markets, stepped up after the close of the market to cut interest rates and allow banks to lend more.
Here are four more key takeaways from yesterday:
1. China tumbles: Stocks in China continued their downward spiral Tuesday ahead of the move by the People's Bank of China, extending a selloff that panicked investors around the world. The Shanghai Composite plunged 7.6%, while the smaller Shenzhen Composite slumped 7.2%.
2. Oil rebounds: Oil prices found a firmer footing, putting on 3% to trade above $39 a barrel. Demand has been slugged in recent months by oversupply of crude and worries about the outlook for the global economy.
3. Europe recovers: European markets are climbing in early trading, with Germany's DAX adding 4.4% and the U.K. FTSE index rising 3.1%. Solid second quarter GDP numbers for Germany, and an upbeat reading of business sentiment in Europe's biggest economy, were helping.
4. U.S. markets in correction mode: The Dow Jones industrial average closed down 3.6%, while the S&P 500 lost nearly 4%, and the Nasdaq gave up 3.8%. All three indexes are now experiencing a correction.