How did US stock markets respond to Monday's extreme selloff?

After a brutal trading day to open 2016, US stock indexes recovered Tuesday amid worries surrounding a global slowdown, prompted by speculation on the Chinese economy's stability.

Lucas Jackson/TPX IMAGES OF THE DAY/Reuters
The day's numbers are shown on a screen above the floor of the New York Stock Exchange (NYSE) shortly before the closing bell in New York on Monday.

U.S. stock indexes were higher on Tuesday morning as investors recovered from a bruising selloff on the first trading day of the year.

Stock markets plunged on Monday after weak Chinese economic data rekindled fears of a global slowdown, prompting a near-$20 billion injection by the People's Bank of China to stabilize its markets.

U.S. stocks closed sharply lower on Monday, with the Dow making its worst start to a year since 2008. Weak U.S. factory data also added to the worries.

Global stocks were down on Tuesday but off the lows they hit in the previous session.

"I think everybody's finally getting settled back in and they're trying to assess really how global growth is going to impact their investments for the rest of the year," said Kevin Kelly, CIO of Recon Capital Partners.

"You will see market volatility throughout the rest of the month, but you'll start to see the market have a couple of up days because people are putting money to work," he said.

Crude oil was lower as investors fretted about the state of the Chinese economy, a stronger dollar and rising tensions in the Middle East.

At 9:38 a.m. ET (1438 GMT), the Dow Jones industrial average was up 22.12 points, or 0.13 percent, at 17,171.06, the S&P 500 was up 4.5 points, or 0.22 percent, at 2,017.16 and the Nasdaq Composite index was up 9.26 points, or 0.19 percent, at 4,912.35.

Nine of the 10 major S&P sectors were higher, led by a 0.68 percent rise in health stocks.

Gilead rose 1.2 percent to $99.21 after its experimental hepatitis B drug was found safer than but as effective as its approved treatment, Viread. The stock provided the biggest boost to the S&P 500 and Nasdaq.

First Solar was up 6.5 percent at $71.08 after Goldman Sachs upgraded the stock to "buy."

Advancing issues outnumbered decliners on the NYSE by 1,703 to 958. On the Nasdaq, 1,185 issues rose and 979 fell.

The S&P 500 index showed two new 52-week highs and no new lows, while the Nasdaq recorded six new highs and 11 new lows.

(Reporting by Abhiram Nandakumar in Bengaluru; Editing by Saumyadeb Chakrabarty)

You've read  of  free articles. Subscribe to continue.

Dear Reader,

About a year ago, I happened upon this statement about the Monitor in the Harvard Business Review – under the charming heading of “do things that don’t interest you”:

“Many things that end up” being meaningful, writes social scientist Joseph Grenny, “have come from conference workshops, articles, or online videos that began as a chore and ended with an insight. My work in Kenya, for example, was heavily influenced by a Christian Science Monitor article I had forced myself to read 10 years earlier. Sometimes, we call things ‘boring’ simply because they lie outside the box we are currently in.”

If you were to come up with a punchline to a joke about the Monitor, that would probably be it. We’re seen as being global, fair, insightful, and perhaps a bit too earnest. We’re the bran muffin of journalism.

But you know what? We change lives. And I’m going to argue that we change lives precisely because we force open that too-small box that most human beings think they live in.

The Monitor is a peculiar little publication that’s hard for the world to figure out. We’re run by a church, but we’re not only for church members and we’re not about converting people. We’re known as being fair even as the world becomes as polarized as at any time since the newspaper’s founding in 1908.

We have a mission beyond circulation, we want to bridge divides. We’re about kicking down the door of thought everywhere and saying, “You are bigger and more capable than you realize. And we can prove it.”

If you’re looking for bran muffin journalism, you can subscribe to the Monitor for $15. You’ll get the Monitor Weekly magazine, the Monitor Daily email, and unlimited access to CSMonitor.com.