Dow Plunges Again After Reversal

The Dow Jones Industrial Average closed the day down 204 points on Tuesday, a day after the Dow plunged 1000-points before partially rebounding. Wall Street’s recovery was in stark contrast to China, where the Shanghai Composite index plummeted 7.6 percent, just a day after its biggest loss in eight years triggered worldwide market turmoil. But by the end of the day, the recovery was all but erased with the S&P 500 and Nasdaq falling about 1 percent. Beijing’s central bank slashed interest rates and banks’ reserve requirements in hopes of ending the mayhem that erased a combined $5 trillion from global equity markets on Monday. Inside China, government censors appeared to crack down on editors at the state-run People’s Daily: A day after it referred to the rout as “China’s Black Monday,” the newspaper had no mention of the financial upheaval. More concerns about China’s economic stability could continue to fuel upheaval.