Now what happens? Adam Shell reports. Overall market weakness was partly to blame, but IBM has also had its own set of issues it’s attempting to work through.

The Dow Jones industrial average fell more than 1,000 points and the Standard & Poor’s 500 index fell into correction territory. Is that the case?

At midday, the Dow Jones Industrial Average surged 384.62 points (2.42 percent), to 16,255.97. Downdrafts are common and lay the seeds for future rallies. The early afternoon was the most promising rebound of the day for the markets. A lot of people forgot what nasty days feel like.

For now, though, “There is just a tremendous decline coming from China”, he said, “and we are importing it”. “It’s probably going to be a bad week”. But they are not the only reasons for what now has been more than a week of sudden global volatility. The announcement from the PBOC, which came after many Asian markets had closed, helped buoy shares in Europe and spurred exits from havens such as Treasurys and the Japanese yen.

But not every stock-market selloff leads to a recession. Richly valued stocks, particularly in the tech industry, were battered. Despite that carnage, no recession ensued. The index dipped slightly in July following larger upticks over the prior four months.

Continuing concerns about China and the U.S. economy threw the stock market into another tailspin on Monday – with media stocks getting caught in the downdraft.

“If you’re too scared of the market, then put your money under your mattress”.

The Shanghai Composite index lurched violently lower in the last hour of trading to eventually close down 7.63 percent at 2,965.1. “We disagree. If you are a long-term investor, the difference between success and failure may be determined by your actions during a stock market decline”.

Growth and value are two different investing styles. “So the folks who got scared and got out (of the markets) missed that growth”.

Q: Is it time to dump Chinese stocks?

Investors are left grappling with the question of whether the selloff is over. It is now trading almost 59% below its one-year high of $103.19 reached in August last year.

Many individuals and companies are taking a hit today – there is no questioning this. “The U.S. market is a great place to be”, Hailer says. Yields rise as prices fall.

As for buying stocks cheap, Allen said not yet.

It had all started so well.

Also weighing on the bourse was a swing back to the 119 level in thedollar-yen, sparking risk-off sentiment in export-oriented counters.Toyota Motor, Nissan, Suzuki Motor and Honda closed down between 3.5 and 4.2 percent.

Many investors anticipate the US central bank to begin to raise interest rates by the end of the year, although expectations for a September hike were tempered by the minutes from the Federal Reserve’s July meeting on Wednesday. And these markets are technically the most prone to overshoot, with significant and adverse spillover effects on other markets. The trend for gold and other precious metals has been negative for years.