U.S. stock market futures recovered from steep early losses Monday night, rallying about 500 points in a reassuring indication following the biggest selloff of the year for Wall Street.

Dow Jones Industrial Average futures

YM00, +0.21%

  were last up 0.2%, while S&P 500 futures

ES00, +0.24%

  rose 0.3% and Nasdaq Composite futures

NQ00, +0.48%

  gained 0.4%.

Those numbers were a huge improvement from lows earlier in the session, as Dow futures lost about 500 points at their low. Dow futures were last up about 30 points.

Traders may have been buoyed after China’s central bank set the yuan’s reference point higher than expected early Tuesday, 7.0304 in onshore trading against the U.S. dollar and 7.0807 offshore. Still, the yuan fell further early Tuesday, last trading at 7.0562 against the dollar.

On Monday, stocks had their worst day of the year, with the Dow shedding more than 767 points. The Dow

DJIA, -2.90%

  ended the day down 2.9%, at 25,717.74 , while the S&P 500

SPX, -2.98%

  declined 87.31 points, or 3%, to close at 2,844.74. The Nasdaq Composite

COMP, -3.47%

  shed 278.03 points to finish at 7,726.04, a decline of 3.5%.

Read: Why a falling Chinese yuan crushed the stock market and intensified the trade war

Late Monday, the U.S. Treasury Department labeled China a currency manipulator for the first time since 1994, opening the door to new sanctions and ratcheting up already high trade tensions. Earlier, China’s currency, the yuan, broke a “line in the sand” below 7 U.S. dollars, apparently in retaliation for President Donald Trump’s announcement last week of new 10% tariffs against an additional $300 billion of Chinese goods, effective Sept. 1.

Also see: Is the ‘everything bubble’ finally popping? This chart might have the answer

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2019-08-05