After months of heady gains, stocks in China suffered steep declines today with major indices dropping more than 7 percent. Analysts noted the declines were due to a correction in an overvalued equity market, which has been bolstered by stimulus policies by the Central Bank of China.

The Shanghai Composite Index fell 7.4 percent to 4,192 while the Shenzhen Composite lost 7.9 percent to 2,618. The declines were on top of double-digit losses over the past week. The less volatile Hang Seng Index shed 1.8 percent to close at 26,663. Losses varied between 8 and 15 percent on individual stocks.

In the U.S. markets, investors shrugged off the declines and focused on debt talks in Greece that pointed to stabilization. The Dow Jones Industrial Average rose 0.6 percent to 17,993 in midmorning trading while the S&P 500 gained 0.2 percent to 2,105. The S&P Retail Select Industry Index increased 0.2 percent to 1,159.

Buoyed by strong quarterly results, shares of  Nike Inc. rose 4.5 percent to $109.99 and Finish Line Inc. stock gained 3.6 percent to $28.01.