How the Dow Jones industrial average fared on Tuesday

The Nasdaq Composite Index closed up 7.60 points, or 0.2%, at 5,044.39, after being down as many as 91 points.

Elsewhere in currency markets, the dollar fell against the euro and the yen as investors weighed up the potential impact of the weaker yuan on the Fed’s plans to raise rates this year.

Alibaba fell as much as 8.2 percent to an all-time low of $71.03 after the retailer’s revenue growth slowed to its lowest rate in more than three years.

As of 1:30 p.m. Eastern time, the Standard & Poor’s 500 index was down 11 points, or 0.5 percent, to 2,073.

The 1.9% cut was called a one-time adjustment by the People’s Bank of China.

Though China said its strong economic fundamentals provided “strong support” for the yuan, sources told Reuters that some within the government were pushing for the yuan to go even lower.

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China. The swing higher for the S&P 500, on a percentage basis, was the biggest positive reversal for the index since October 4., 2011, according to Dow Jones data. Further, the depreciation of rupee looks more of a knee-jerk reaction to China and we are not sure whether it is a trend line.

U.S. stocks had climbed on Monday, giving the S&P 500 its biggest increase since May, buoyed by gains in commodity-related shares and optimism over Warren Buffett’s deal to buy Precision Castparts. The world’s largest chip-equipment company revealed net income of $329 million, or 27 cents a share, on sales of $2.49 billion in its fiscal third quarter; after adjustments, Applied Materials claimed profits of 33 cents a share. Yahoo, which has a 15% stake in Alibaba, fell 4.3%.

Beijing weakening the yuan will “put the U.S. under the spotlight as being the single large economy in the world bearing the burden of an appreciating currency”, said Jean Médecin, a member of the investment committee at Carmignac Gestion, which oversees €58 billion in assets. Spirit Airlines, American Airlines and Delta each added at least 1.6 percent. That is far below the 3.5 percent to 4 percent gains that usually occur in a healthy economy. A decline in U.S. overnight indexed swap rates indicated the probability of a rate hike next month faded to less than 40 percent, from an above 50 percent probability after last week’s solid U.S.jobs data. Retail sales, which represent a big chunk of consumer spending, rose 0.6% in July from a month earlier, matching expectations.