"The latest decline takes us back to where we were November 17", McBride said. The decline was overdue, according to David J. Kostin, chief US equity strategist, at Goldman Sachs.
The VIX on Tuesday had hit a more than two-and-a-half year high above 50, after trading, on average, below 20 for months. The British FTSE 100 index fell 2.6 percent.
Tokyo led a collapse throughout the region, briefly diving nearly seven percent before closing down 4.7 percent.
Investors are reportedly concerned about rising inflation, which is forcing central banks to raise interest rates.
"While volatility in the markets has eased over the last couple of days, it has remained at very high levels - probably a sign of the ongoing nervousness among investors which may leave markets vulnerable to further declines", Craig Erlam, senior market analyst at Oanda, said in a note.
USA stocks shot higher in afternoon trading as the market looks to recover from its biggest loss in 6 ½ years.
Japan's Nikkei 225 index skidded 6.1 percent to 21,296.03 by early Tuesday afternoon. The ASX 200 fell 3.20 percent, the Shanghai Composite was down 3.38 percent and South Korea's Kospi was 1.54 percent lower just before the closing bell.
An improving outlook internationally is adding to pressure on global fixed income markets.
The selloff continued into Tuesday's Asian session, with all major indexes down at 3:57 p.m. HK/SIN.
Panic in other markets can send investors racing for the "safe haven" of Japanese yen holdings, she noted.
Jordan Hiscott, chief trader at ayondo markets told Express.co.uk yesterday, that the markets are treading carefully. That's less true for China, whose financial markets are more cloistered from worldwide investors.
As the heart rates of many investors seesawed in recent days to coincide with wild swings in the stock market, Chippewa Valley financial advisers urged their clients to stay calm.
The Dow finished 567.02 points higher, or 2.3 percent, at 24,912.77.
The benchmark Standard & Poor's 500 index is now down 8 percent from the record high it set January 26. That's less than the 10 percent seen as a correction.
"While it's impossible to predict where the markets will meander on a day-to-day basis, we are confident that any pullback that plays out over the next few weeks represents a better opportunity to buy for the long run rather than a reason to sell", Ablin said. Natural gas gave up 1 cent to $2.70 per 1,000 cubic feet. Brent crude, which is used to price worldwide oils, shed 73 cents to $66.89 per barrel. The euro slipped to $1.2372 from $1.2377.
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