Oliver Renick

Investors buoyed by corporate earnings and economic outlook.

Central bankers began mulling a hike sooner, than later, causing the S&P 500 to fall 2.4%, its biggest weekly drop since February.

Traders have piled into global equities, heartened by deal activity and better-than-expected corporate earnings.

U.S. stocks extended their three-month lows, with the Dow down more than 180 points, amid a China-led rout that continued to engulf equities around the globe.

“We’ve had a number of negatives out there in the U.S., and China is a reminder that there aren’t many things to be bullish about going into this year,” said Michael O’Rourke, chief market strategist at JonesTrading Institutional Services.

U.S. stocks slump to their lowest levels since mid-October, amid fears that a Chinese economic slowdown will dampen global growth.