By Markus Heitkoetter
￼This is what you call a rebound!
Stocks opened the session lower and things looked ugly. With continued concerns over China, global markets dropped and U.S. stocks opened lower.
At one point the S&P was down as much as 1.5% and it looked like things could only get worse. But stocks found support and a mid-day rally led stocks higher.
This mid-day rally morphed into a pretty impressive rebound. By day’s end the major indices had worked their way back from major morning deficits.
The S&P finished the day with a 2 point gain after being down 32 points! The S&P ended the day with a 0.10% gain, closing at 2086.05.
Today the DOW ended flat. The DOW dropped as much as 275 points before recovering and finishing the day at 17402.51.
The NASDAQ had the biggest recovery day and finished 0.15% higher. The NASDAQ had a 7.5 point increase and close of 5044.39.
So why the volatility?
Yesterday China devalued its currency by the largest amount on record. Today the People’s Bank of China surprised everyone by devalued the currency once again. Although the decision is meant to boost exports, concerns over the exchange rate led to more turmoil in overnight trading.
To make matters worse, it was reported that the latest Greek bailout package was insufficient. Now Eurozone leaders will try to get things resolved during a meeting in Brussels on Friday.
With currencies in the spotlight, the U.S. dollar saw weakness today. The US Dollar Index (DX) dropped 1.07%, its biggest drop since early June.
The economic calendar gets interesting tomorrow with Retail Sales and Weekly Unemployment Claims at 8:30am ET.