NEW YORK (AP) -- A decline in the dollar helped fuel a market rebound on Wednesday that nearly erased a big-sell off the day before brought on by fears of a slowdown in China.
Stocks had fallen more than 1 percent Tuesday after a surprise interest rate increase in China, the first time the country had raised rates in nearly three years. That made some traders concerned that slower growth in China might put a drag on the global economy.
Some of those concerns were erased after the Shanghai Composite Index, China's main stock market benchmark, rose slightly in overnight trading. Those gains "helped create a more constructive tone for the trade this morning," said Nick Kalivas, an equity analyst for MF Global.
Looks like a good day for the U.S. stock market, especially after a drop yesterday due to concerns about the banks. Other than the fact that a weakening dollar benefited the rally. What are the cons when it comes to a weakening dollar in this particular market?
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