The price swings are a change of pace for a stock market that's sat mostly unperturbed for months.
USA stocks saw the biggest one day fall in six years on Monday as investors rushed to take profits, after bond yields rose sharply last week, following an equities rally to record levels in January.
Economically sensitive S&P materials, technology and consumer discretionary indexes advanced, while the rest sagged, led by a decline in rate-sensitive utilities, down 1.6 per cent.
Both the S&P 500 and the Dow sank more than 4 percent on Monday, their biggest falls since August 2011, as concerns over rising U.S. interest rates and government bond yields hit record-high valuations of stocks.
The index was up 0.3% Tuesday afternoon.
The stock market is finally getting a long-awaited bout of volatility. An index of Latin American stocks was up 1.1 per cent. Japan's Nikken was off 4.73%, while China's Hang Seng Index fell more than 5%.
U.S. two-year, 10-year and 30-year yields ended the day 7bp, 8bp and 5bp higher at 2.11%, 2.80% and 3.07%, respectively. That raised the alarm about higher inflation and, with it, potentially higher interest rates.
United States crude fell 1.2 per cent to settle at $US63.39 a barrel while Brent dropped 1.1 per cent to settle at $US66.86.