U.S. stocks best open of the year after yesterday’s global rout

Investors are reeling from the global selloff. No one knows if the worst of the volatility is over. The U.S. economy has been steadily improving but global growth is weak.

It is known that, central banks tend to protect their financial markets. Indeed, China's central bank stepped in yesterday and cut interest rates for the fifth time since November, lowering the one year lending rate 25 basis points to 4.6 percent and decreasing the required reserve ratio for banks by 50 basis points. It is not clear if this move will restore confidence or be viewed as just another in a string of ineffectual attempts to calm markets. But for today Europe is up big and the U.S. markets opened up sharply.

"Fearful investors who sold late yesterday may be missing the opportunity to recoup some of their losses. The recent market moves underscore the need for investors to have a plan created in calmer times to avoid any rash actions that may be inconsistent with long-term investment goals",says Voya Global.