The US indices ended the trading session on red

The US indices ended the trading session on red

In Tuesday's trading, high-dividend companies including utility and real estate companies fell, as bond yields increased after a sharp drop on Monday.

Tuesday brought another day of volatility a day after a steep selloff that brought the biggest percentage daily declines for the S&P 500 and the Dow since August 2011 and a near 1,600 point intraday loss for the Dow.

The swoon began Friday as investors anxious that accelerating inflation and higher interest rates could derail the market's record-setting rally. The Dow quickly recovered much of that loss.

The broad-based S&P 500 jumped 1.8 per cent to finish at 2,695.29, while the tech-rich Nasdaq Composite Index jumped 2.1 per cent to 7,110.92.

All three of Wall Street's main indexes were on course for falls of between 0.2 percent and 0.3 percent, indicated by volatile premarket futures trading.

Trading has been turbulent all day.

The Dow Jones industrial average shed 19.42 points, or 0.1 per cent, to 24,893.35. It's switched between gains and losses several times since then.

The S&P 500 remains up 26 percent since his election, and on Tuesday clawed back into positive territory for 2018, up 0.8 percent.

"But for an idea of basis, the swings represent a move of just over 4.5 percent lower, whilst the 1987 Wall Street capitulation was 23 percent".

Corrections are seen as entirely normal during bull markets, and even helpful in curbing excessive gains and allowing new investors to buy into the market at lower prices. The current bull market is set to turn nine years old in about a month.

Traders were still bracing for further volatility in the near future, as they tried to determine if the wild swings these past few days were the beginning of a deeper market correction, or just a temporary blip in the U.S. market's nine-year bull run. Australia's S&P/ASX 200 was flat at 5,876.30. Higher bond yields also make stocks look less attractive by comparison.

USA 10-year yields were at 2.789 per cent, up from 2.766 per cent on Tuesday. Neither index has closed in a correction in two years. Higher rates act like a brake on the economy by slowing down borrowing and lending. "Central bank tightening needs to be taken seriously all of the time", said Fritz Folts, chief investment strategist at 3EDGE Asset Management, in Boston.

Market pros say investors should expect more volatility in the days ahead as Wall Street adjusts to a changing investment landscape in which stronger economic growth may lead to higher inflation and interest rates.

"If I have to choose bonds or equities, with interest rates going up, bonds just got more attractive", she said.

Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business. But a stock market accustomed to a steady climb for more than a year and half as given way to two weeks of shaky selling.

Energy companies dropped along with oil prices and technology companies also declined. Brent crude, the standard for global oil prices, lost 96 cents, or 1.4 percent, to $67.62 a barrel in London. Heating oil dipped 3 cents to $1.99 a gallon. The yield on the 10-year note was as low as 2.04 percent as recently as September. Spot gold dropped 0.9 percent at $1,313.67 per ounce.

Emerging market stocks lost 2.74 percent, but the iShares MSCI emerging markets exchange-traded fund jumped 3.3 percent.

Meanwhile, South Korea's Kospi advanced 0.17 percent. Britain's FTSE 100 fell 1.5 percent and the French CAC 40 lost 2 percent.

"Certainly, by any standards, it's not a bear market and not technically counted as a correction, which is usually measured as a 10 percent fall from the high". The March copper contract was down one cent to US$3.08 a pound.

Currency markets were steady, with the euro down 0.2 percent at $1.2349 and the dollar 0.2 percent lower at 109.36 yen.

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