After a six-day losing streak, U.S. stocks surged today, helping to reverse some of the $500 billion in losses that were suffered.

The Dow Jones Industrial Average closed up about 619 points, or 4 percent, while the S&P 500 jumped about 3.9 percent, the index's biggest rally since November 2011, at the close of New York trading. The Nasdaq surged about 4.2 percent.

The Dow closed at more than 17,500 on Monday, Aug. 17 and closed at 15,666 on Tuesday, a slide of nearly 2,000 points.

Investor panic led the S&P 500 into correction territory on Monday, the first time in about four years.

Yesterday, despite strengthening economic data, including U.S. new home sales and consumer confidence, the major U.S. stock indices all closed lower.

Around the world, stock markets have languished related to concerns about an economic slowdown in the second-biggest economy in the world, China. The government there has tried to spur growth by devaluing its currency earlier this month. Yesterday, the Chinese central bank cut interest rates to encourage banks to lend.