Updated on August 25 at 4:08 p.m. ET
U.S. stocks reversed their gains Tuesday, as a market rally faded in the last hour of trading. The Dow Jones industrial average—which at one point was up 441 points—shed more than 200. The S&P 500 and Nasdaq also closed sharply lower.
The Dow fell 205 points, the S&P 500 closed below 1,900, and the Nasdaq shed 0.44 percent. It was a second straight day of losses for the markets and it comes amid growing unease about the health of the Chinese economy. Stocks had a roller-coaster Monday, with the Dow shedding more than 1,000 points at the opening bell before closing down 3.5 percent.
It was a different story at noon on Tuesday. At one point, the Dow was up 441 points. The Nasdaq rose 3.2 percent, and the S&P spiked 2.5 percent, out of correction territory. It ended back there Tuesday evening.
“Whatever triggered the consternation in the last few trading sessions is likely to be replayed again,” Mark Luschini, chief investment strategist at Janney Montgomery Scott, told CNBC. He said a negative close “would be a set up to grind sideways to work out this process, if this rally and enthusiasm can’t last I think it’s an indicator (of that consternation).”