Tuesday's markets saw dramatic gains, losses, and volatility, which investors may need to get used to in the months ahead. Jeanne Yurman reports.
A sharp rebound from Monday's sell-off proved to be fleeting. Stocks had swung from the biggest losses in four years to the sharpest gains for the year but ultimately closed deep in the red. Bargain hunters had temporarily waded into the market after China's central bank outlined measures to revive its economy. Concerns about the world's number two economy's flagging health at the root of Monday's sell-off. But uncertainty reigns supreme and as Tuesday's action shows, it may be a volatile ride for a bit says Nick Colas of ConvergEx. SOUNDBITE: NICK COLAS, CHIEF MARKET STRATEGIST, CONVERGEX (ENGLISH) SAYING: "As an investor, if you lost sleep last night, you've got too much risk. Rethink that, because you're going to be dealing with the same kind of issue over and over again for the next couple of months." There is what Wall Street calls the 'wall of worry.' Behind it are several key questions? How severe China's slowdown is and can officials there can positively affect it? If China - the engine of global growth - is slowing what will fuel worldwide economies next? And what does all this mean for a September rate hike by the Federal Reserve? U.S. Bank's Eric Wiegand. SOUNDBITE: ERIC WIEGAND, SENIOR PORTFOLIO MANAGER, PRIVATE CLIENT RESERVE, U.S. BANK (ENGLISH) SAYING: "Odds of that rate hike have certainly been diminished by the magnitude and the velocity of the market reaction over the last week. That is to say we could still certainly see them move." All of these unanswered questions as stocks head into October, the peak season for yes, stock market volatility.