U.S. stocks moved higher in early trading Wednesday after slumping for six straight days amid concern about a slowing Chinese economy.
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All three major indexes were up about 4 percent for the day.
The New York Stock Exchange invoked a rarely-used rule both on Monday and Tuesday to help ensure a smoother open to the stock market.
The recent American stock market tumble stands in sharp contrast with sentiment about the U.S. economy.
U.S. stocks slid again Monday, with the Dow Jones industrial average briefly plunging more than 1,000 points in a sell-off that sent a shiver of fear from Wall Street to Main Street. The Nasdaq composite climbed 101 points, or 2.3 percent, to 4,607.
Markets have been volatile since China chose to weaken its currency earlier this month. Investors worry that the economy could falter if the Fed raises rates too soon. Shares were mostly lower in Asia on Wednesday, after a move by China to cut its key interest rate failed to spark a sustained rally on Wall Street.
It cut its interest rates for the fifth time in nine months in a renewed effort to shore up economic growth. But it is not expected to deliver a policy update until it wraps up a meeting of policymakers in mid-September. It was the Dow’s third-biggest point gain of all time and its largest since October. 28, 2008, when it soared 889 points.
Goldstein said consumers could be affected by the stock market wobble, which could trigger a lack of confidence ahead of the all-important holiday season despite relatively good economic data on housing, jobs and manufacturing. In percentage terms, it was the best day for the S&P 500 in almost four years.
Despite the increase, U.S. manufacturers still face a host of problems from a stronger dollar to falling oil prices and turbulence in China, the world’s second-biggest economy.
OIL DEAL: Cameron worldwide, a maker of equipment for the oil industry, jumped 41 percent after Schlumberger said it was buying the company in a cash-and-stock deal.
The morning rise comes after three days of falls on stock markets around the world that erased close to $3tn globally.
US shares of Swiss pesticides giant Syngenta slumped 13.6 per cent after Monsanto dropped its campaign to buy the company following rejections.
Despite the monster gains on Wednesday, analysts warn stocks may be vulnerable to further losses.
The jump follows a stomach-churning day on Monday, when the Dow plunged more than 1,000 points at one point before finishing down 588.40 points, or 3.6 percent. Britain’s FTSE 100 fell 1.7 percent.
The Commerce Department said new house sales rose 5.4% in July, slightly less than expected but still indicative of recovery in the housing market.
In Europe, Germany’s DAX stock index fell 4.7 percent, while the CAC-40 in France slid 5.4 percent.
But Hong Kong’s Hang Seng index fell 0.5 percent to 21,305.17, and mainland China’s smaller Shenzhen Composite Index lost 3.1 percent.
In commodity markets, benchmark U.S. crude dropped $2.14 to $38.29 a barrel in electronic trading on the New York Mercantile Exchange.
BONDS AND CURRENCIES: U.S. government bond prices fell. The yield on the 10-year Treasury note rose to 2.16 percent from 2.07 percent late Tuesday.
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In currency markets, the dollar rose to 120.12 yen from Monday’s 118.69 yen.
