At one point during the trading day it declined more than 1,500 points before recovering slightly. The S&P 500 was up 19.78 points, or 0.73 percent, at 2,714.92, while the Nasdaq Composite was up 17.09 points, or 0.24 percent, at 7,132.97.
Stocks shuttled between positive and negative territory throughout the day, their activity spanning more than 1,000 points.
The Dow finished down 1,175.21 points, or 4.6 percent, at 24,345.75.
Toshimitsu Motegi, an economy minister, said he was watching market movements closely but that the economy was stable and improving.
"The market is pricing today what's going to happen six months from now", Samalin says. Australia's ASX 200 index also rose by 0.7 per cent, although shares in Shanghai and Hong Kong continued to fall.
"Apart from leading to day-to-day volatility we continue to be comfortable with USA inflation moving up because the lack of foreign inflation prevents the Fed from engaging in a too rapid rate hiking cycle, as the resulting much stronger dollar would be very deflationary through imports and commodities".
He said traders are still jittery about jumping back in. The Federal Reserve has raised rates five times since late 2015, yet bond yields stayed stubbornly low.
Is this decline a direct reaction to Trump's tax cuts?
"Now that everybody is on edge, you're going to see the volatility swing in both directions", Lancz said.
Gold slipped as the US dollar strengthened.
London's FTSE 100 closed down nearly 200 points or 2.6% at 7141.
Team USA is fielding the largest team in Winter Olympic history
Meanwhile, suspensions on 11 other players have been partially upheld, which means they will only miss the 2018 Winter Olympics in Pyeongchang beginning on February 9, reported the New York Times.
The falls follow some good years for investors. This would be much more severe than what happened Monday.
The decline was the largest in percentage terms for the Dow since August 2011, when markets dropped in the aftermath of "Black Monday" - the day Standard & Poor's downgraded its credit rating of the US. Earlier, volatile equity markets led investors to seek out lower-risk bonds, but many investors remained nervous after a week-long bond rout sent yields on Monday to four-year highs.
"There are no systemic issues", he told a congressional panel on Tuesday.
"I think sentiment was a little too optimistic... what was driving the market up in January?"
How does it affect me?
Even so, staying invested is the key to long-term success.
More than nine million people in the United Kingdom have auto enrolment pensions, and 12 million are active members of defined contribution schemes.
U.S. equity strategists said there's no reason to panic, calling the week-long sell-off "overdue".
Investors seem to be anxious about evidence from increasing levels of inflation in the United States.
Rising T-Bond Yields aren't good for stock or real estate valuations. "New buyers are showing up, who were waiting for the prices to go down".
But, as ever, future market trends are hard to determine. Short-term corrections are also viewed by technical analysts to be inevitable as stocks trend upwards in a bull market. According to Unicredit strategists, the greater weight placed by European markets on industrial stocks and financials should see Europe better suited to weather the current financial storm. A drop of 10 percent from a peak is referred to on Wall Street as a "correction".
Even before an impressive late-session surge, Wall Street's stronger performance helped the main European stock markets off their worst levels. Indeed, the market has shown sustained growth over the past several years.