News that China will let its yuan move more freely triggered a strong buying effort that sent the stock market sharply higher in the early going.
A gradual loss of support left stocks to surrender all of their gains and settle with losses.
A stronger yuan should boost China's purchasing power, such that goods and raw materials would seem cheaper to China's consumers and businesses.Market participants reacted to the news and the strong overseas gains by sending the Dow, Nasdaq, and S&P 500 each up by more than 1% in the early going.
Traders came to see the move as more of a long-term shift rather than something that would give the economy a boost now. So Stocks erased big gains Monday after investors lost some of their enthusiasm about China's decision.
Advancing Sectors: Materials (+0.4%), Industrials (+0.3%)
Declining Sectors: Consumer Discretionary (-0.9%), Tech (-0.8%), Utilities (-0.8%), Health Care (-0.4%), Consumer Staples (-0.3%), Financials (-0.3%), Energy (-0.2%), Telecom (-0.1%)