Stocks cut major losses by Tuesday afternoon. Though the market opened in the morning down by more than 450 points, it rebounded after the Fed set the emergency interest-rate cut. Wall Street, however, still closed in the red, as investors continued to weigh the likelihood of a global economic slowdown and a U.S. recession.

The emergency interest-rate cut from the Federal Reserve seemed to add to jitters, raising worries that the economic slowdown is worse than thought – and that the central bank is behind the curve.

The Dow Jones industrial average lost 128 points, closing at 11,971.