The Dow Jones Industrial Average closed up by more than 400 points this afternoon. The Nasdaq also bounced back, along with the S&P 500.
The markets had a long way to go to make up for Monday's sell-off.
At today's closing bell, the stock market was up by a very healthy four-percent.
The Dow lost more than 600 points yesterday in the first trading day since Standard & Poor's downgraded the nation's credit rating.