[UPDATED] Stock Market Turmoil: U.S. Markets Rebound, China Cuts Rates

China Stock Market
China's stock market.
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Update (Aug. 26, 2015):

U.S. stocks closed sharply higher Wednesday, posting their best day since 2011.

The Dow Jones industrial average ended the day up 619.07 points, or 3.95 percent, to 16,285.51.

The S&P 500 gained 72.90 points, or 3.90 percent, to 1,940.51.

The Nasdaq soared 191.05 points, or 4.24 percent, to 4,697.54.

Update (Aug. 25 2015):

U.S. stocks fell sharply in the final hour of trading Tuesday following a brief rally.

The Dow Jones industrial average shed 204.91 points, or 1.3 percent, to 15,666.44.

The S&P 500 declined 25.60 points, or 1.4 percent, to 1,867.61.

The Nasdaq fell 19.76 points, or 0.4 percent, to 4,506.49.

What we reported earlier (Aug. 25 2015):

Almost as anxiously as investors sold off stocks in U.S. markets yesterday, they were on the hunt to buy them today.

China’s central bank cut interest rates overnight and lowered the reserve requirements for banks — essentially attempting to prop up China’s economy — which improved investor sentiment in the U.S. and internationally Tuesday.

The People’s Bank of China (PBOC) announced a reduction in the one-year benchmark bank-lending rate by 25 basis points, to 4.6 percent; a cut of its one-year benchmark deposit rate by 25 basis points, to 1.75 percent; and a reduction of reserve requirements (RRR) for most large banks by 50 basis points, to 18 percent.

While market watchers continue to withhold their collective sigh of relief, across-the-board improvement in major stock indexes buoy optimism for a rebound.

The Dow Jones Industrial Average was up nearly 300 points within the first hour of trading Tuesday, while the S&P 500 and the Nasdaq trekked back into positive territory as well.

At 11:28 a.m. EDT, the Dow had gained 401.29 points, or 2.53 percent, to 16,272.64; the Nasdaq had gained 151.36 points, or 3.34 percent, to 4,677.61; and the S&P 500 had risen 49.33 points, or 2.61 percent, to 1,942.54.

The Shanghai Composite remained in the red, shedding 244.94 points, or 7.63 percent.

Footwear stocks continue to track the overall stock market.

At 11:28 a.m. EDT, Nike Inc. was up 2.05 percent, Skechers USA Inc. had improved 5.89 percent, Under Armour Inc.’s shares had leaped 6.10 percent, Caleres’ share price had improved 1.06 percent and Foot Locker’s shares had jumped 3.14 percent.