Investors braced themselves for another wild ride on Wall Street. Chinese stocks fell again, but there were signs of hope on other markets.
Wall Street has been looking for a rebound, and European averages shot back up as the trading day began. But China's Shanghai Composite Index was down another 7.5 percent.
Also, China cut interest rates for the fifth time since November in the latest attempt to boost its slowing economy.
That weakening Chinese economy has been one of the key reasons the U.S. market has fallen so sharply over the past few days and led to such a wild ride, with the Dow falling a thousand points -- then back up a thousand points -- during the day Monday.
Traders are predicting more of the same in the days ahead.
"It's gonna be a volatile week; it's going to be a lot of up and down," stock trader Peter Tuchman warned.
"What the global stock markets are doing and have been doing for this past month is repricing a growth in China that is less than it had been," Ben Willis, with Princeton Securities, said.
The Dow is now down 11 percent from the start of the year. The bloodbath on the Chinese stock exchange has some worried that a U.S. stock slide is overdue.
"The market has gotten ahead of where the actual economy is," Art Cashin, with UBS Financial Services, said.
The White House tried to quell the panic Monday by touting what it calls the long-term strength of the U.S. economy.
"U.S. businesses over the last 65 consecutive months have added 13 million jobs, the longest sustained job growth in American history," White House press secretary Josh Earnest said.
Experts say the average American 401k lost $9,000 in the past week, but over five years that same account is up about 60 percent.
And many analysts say that even though more volatility is ahead, they still expect that over the longer term, patient investors will come out ahead.
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Stephen Moore: What about Interest Rates?
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Stephen More: No Easy Money for Economy
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