U.S. stocks recovered Tuesday after their brutal losses Monday with the Dow Jones industrial average up over 300 points at the opening. The U.S. markets are responding to China cutting its interest rates, USAToday reports.

Investors were optimistic after China responded to their slowing economy by cutting its interest rates for the fifth time since November. After five days of intense selling, investors are in search of cheap stocks after Monday's big losses.

The NASDAQ was briefly up 3.5 percent with Netflix and Chinese stocks like JD.com and Baidu leading the way. Alibaba was up over 3 percent Tuesday morning, CNBC reports.

The S&P 500 jumped more than 2 percent at opening to bounce back from correction territory. Monday, about 200 different stocks from the index hit their 52-week lows.

Even with Tuesday's recovery, August is still on pace to be an awful month for stocks. The Dow is on pace for its biggest monthly percentage loss since February 2009 and the NASDAQ could have its worst month since March 2008.

Monday's concerns "were China and collapsing commodity prices, and both of those have given us some relief and when I look at China I don't look at the Shanghai market. I look at the Hong Kong market," said James Meyer, chief investment officer at Tower Bridge Advisors.

Hong Kong's Hang Seng closed up 0.72 percent, while Japan's Nikkei fell 4 percent and China's Shanghai Composite fell 7.6 percent, below the key 3,000 mark.

Oil prices also were up Tuesday with crude rising more than 3 percent to around $39.50 per barrel, and brent crude oil was also up more than 3 percent, passing the $44 mark per barrel.

"I'm looking for every reason to be a buyer," said Nick Raich, CEO of The Earnings Scout. "We're not upgrading our view at this point until we see topline growth... until then it's going to be hard to sustain a rally."