Other major USA stock indexes also rebounded Tuesday, with the S&P 500 finishing up 46 points, or 1.7 percent, and the Nasdaq up 148 points, or 2.1 percent.
U.S. stocks rallied Tuesday as a late surge helped them regain nearly half their losses from the day before, when they had their biggest plunge in 6 1/2 years.
The gap between the Dow's highest and lowest levels on Wednesday was about 500 points, or 2 percent.
Trading has been turbulent all day. Those losses had wiped out stocks' gains since the beginning of 2018.
At its session low on Tuesday, the S&P had declined 9.7 per cent from its Jan uary 26 record high.
What happened on Wall Street? Corrections are normal occurrences during bull markets, and there hasn't been one in two years, an unusually long time.
"In the 'old days, ' when good news was reported, the Stock Market would go up".
In Tuesday morning trading, investors took another roller coaster ride. The yield on the 10-year Treasury note rose to 2.84 per cent from 2.81 per cent.
While investors may still be uncertain about where stocks are going, they're not rushing for cover in ultra-safe investments like bonds.
Wall Street bounces after another volatile day, global markets stabilize
USA stocks plunged the most in 6 1/2 years, with the Dow Jones Industrial Average sinking more than 1,175 points; the equity selloff reached a fever pitch amid rising concern that inflation will force interest rates higher. It could prompt the Federal Reserve to raise interest rates at a faster pace, which would act as a brake on the economy.
Scott Wren, senior global equity strategist for Wells Fargo Investment Institute, said investors are anxious that the higher wages could eat into corporate profits and that the Fed could "make a mistake" and raise rates too quickly.
"Markets usually grind to the upside, but fall like a rock", said analyst Naeem Aslam at trading firm ThinkMarkets.
Yields climbed after the Bank of England said interest rates probably need to rise sooner, adding to expectations of reduced central bank monetary stimulus globally. Experts do think the global economy will keep growing this year even though that is likely to bring more inflation.
He said the sharp volatility in recent days was "compounded by technology" that drove much of the fierce buying and selling by traders.
At one point during the trading day it declined more than 1,500 points before recovering slightly. S. crude fell 2.5 percent to settle at $61.79 per barrel and Brent dropped 2 percent to $65.51. U. The March copper contract was down one cent to US$3.08 a pound.
Energy stocks were dragged down by a 2.4 per cent plunge in oil prices overnight. On Wednesday, however, most global stock indices showed signs of recovery, providing some respite to investors.
The Nasdaq composite tumbled 274.82 points, or 3.9 per cent, to 6,777.16. Germany's DAX was up 1.6 percent while the British FTSE 100 index rose 1.9 percent.
Hong Kong lost more than five percent in its worst day since summer 2015, while Sydney and Singapore each sank three percent.
WELLINGTON: New Zealand's benchmark NZX 50 Index fell 2.1 per cent, to 8241.83.
The dollar edged up to 109.40 yen from 109.33 yen. The euro dipped to $1.2394 from $1.2399. It isn't the biggest percentage drop, though.
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US indices ended lower in choppy trade
The S&P 500 index showed 2 new 52-week highs and no new lows, while the Nasdaq recorded 13 new highs and 21 new lows. The materials group, which includes precious and base metals miners and fertilizer companies, lost 1.2 per cent.
Dow Opens Down 521 Points, but Drop Quickly Eases
The fall of 1,175 points to closing exceeds 778 which lost selective at end of September 2008 and 733 in mid-October of that year. Among stocks, Walt Disney was up 2.2 percent in premarket trading after the media company's quarterly profit topped forecasts.