NEW YORK (TheStreet) -- U.S. stocks are trading lower on Tuesday after the People's Bank of China surprised investors by devaluing its currency. As a result, the S&P 500 is down 1.25% on the day, giving back Monday's gains. 

It's the biggest move they've made with their currency in 20 years, Paul Richards, an independent macro strategist formerly with UBS, said on CNBC's "Fast Money Halftime Report." The Chinese government is showing that it's willing to be accomodative and it will likely continue doing so until it's able to get its GDP growth back toward 7%. 

"I'm surprised," Joseph Terranova, senior managing partner at Virtus Investment Partners, said of investors' response to the China news. The Chinese government is looking at inflation to boost growth, which historically has meant higher asset prices, he explained, adding that China's devaluation of the yuan doesn't seem like bad news.

China's weaker yuan raises questions about how strong the U.S. dollar will become, said Stephanie Link, portfolio manager at TIAA-CREF.

The strong dollar will benefit domestic-focused U.S. companies like homebuilders, non-residential construction companies and consumer discretionary stocks, she said.

Pete Najarian, co-founder of optionmonster.com and trademonster.com, added that financial and health care stocks are still trading above the 50-day moving averages. Conversely, Monday's big winners -- energy, industrials and materials -- are all down badly on the day. 

Stocks like Apple (AAPL) - Get Report are also getting hit on China's news, with shares down 5% on the day, Najarian said. But Apple's just getting started in China and will have more growth to come, even though the devices are now more expensive because it take more yuan to purchase the same goods.

Najarian sees Apple's U.S. sales making up for ground lost in China and said the Apple's selloff seems like an overreaction.

There's a "temporary environment of perception," Terranova said, explaining that investors perceive Apple to be a big loser in China. While the devaluation of the country's currency doesn't help, Apple is not doomed. 

And while some investors might think China's surprise currency move takes the Federal Reserve's possible rate hike in the fall off the table, UBS' Richards says investors should think twice before coming to that conclusion. 

Richards said it's "definitely" likely the Fed will raise rates in the fall, either in September or October. That move would pave the way for the Fed to possibly raise rates in December again as well, if it feels the economy can handle it. He believes European stocks will outperform U.S. stocks, that oil is headed toward $40 a barrel and that the euro is a sell at current levels.

Link agreed, noting that it isn't necessary for the Fed to maintain an emergency fiscal policy with interest rates at zero. The labor market is doing well and GDP growth is reasonable. It's not a booming economy right now, but it's not one that warrants a crisis rate policy either.

Terry Duffy, executive chairman and president of CME Group (CME) - Get Report, said the Fed made a mistake by not hiking interest rates at some point in the last few years. Now it's become a main focal point for many investors. The paltry 25 basis point increase to interest rates would be so meaningless to consumers, it doesn't make sense that they haven't done it yet.

Rather than interest rates, oil prices are far more important to consumers in this context, Duffy said, explaining that a drop in prices directly benefits them with savings at the pump. While high production continues, there's likely a little more downside left in the commodity's price.

As for how oil can benefit the U.S., Duffy said if the U.S. would lift its export ban on oil reserves, it could boost GDP by one percentage point, which is a rather significant. He added that the Fed seems unlikely to raise rates in 2015.

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.