US stocks bounce, Dow jumps more than 300 points after China interest-rate cut

FILE -- American flags fly at the New York Stock Exchange on Wall Street, Monday, July 6, 2015. (AP Photo/Mark Lennihan) (AP)

U.S. stocks jumped at the open after China's central bank cut interest rates to support its economy.

The Dow Jones industrial average rose 296 points, or 1.9 percent, to 16,180.61, as of 9:45 a.m. Eastern time. The Standard & Poor's 500 index climbed 38 points, or 2 percent, to 1,932. The Nasdaq composite rose 109 points, or 2.4 percent, to 4,635.

Oil prices are up, but U.S. crude is still trading below $40 a barrel.

Treasury notes are falling, pushing up the yield on the 10-year benchmark not to 2.08 percent.

Best Buy was the biggest gainer in the S&P 500 index. The stock surged 16.4 percent after its fiscal second-quarter results handily beat analysts' estimates as shoppers picked up major appliances, large screen televisions and mobile phones.

The Chinese central bank cut its key interest rate and deposit rate on Tuesday after its main stock market plunged for a fourth day. The move boosted markets around the world.

Mellahi says that while the rate cuts may buoy markets in the short-term, the underlying causes of investors' concerns - the slowdown in the Chinese economy - will last for some time.
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