Bullard said after Friday's jobs report showed surprising pickup in average hourly earnings, investors seemed to believe inflation would start to heat up and might force the US central bank to quicken policy changes instead of raising benchmark interest rates at a gradual pace, according to media reports.
After a nervous and negative start to the trading day in NY yesterday, U.S. markets reversed early steep losses to close much higher.
The Dow Jones industrial average fell 19 points, or 0.1 percent, to 24,893. At its lowest point on Tuesday, the Dow was off 10.7 per cent from its Jan 26 record. Germany's DAX was up 0.7 percent at 12,482 while the FTSE 100 index of leading British shares rose 1 percent to 7,214.
On Friday, the Dow plunged 665.75 points, while the S&P 500 and the Nasdaq dropped 2.12 percent and 1.96 percent respectively. The Dow is up 24 percent over that time, the S&P 500 18 percent. The S&P 500, for example, has fallen 7.8 percent since it set its latest record high on January 26.
WALL STREET: Indexes rallied in the morning, bobbed up and down for much of the day, then sank in the last few minutes of trading. It has been an uncommonly long time since the last market correction, which ended nearly two years ago.
Wall Street lost steam in afternoon trade, after USA 10-year Treasury yields rebounded to 2.836 per cent (their highest levels in four years).
Technology companies posted some of the biggest losses Wednesday.
On Monday, the Dow finished down 4.6 percent, the biggest decline in percentage terms since August 2011, when investors were fretting over Europe's debt crisis and the debt ceiling impasse in Washington that prompted a US credit rating downgrade.
That fed into widespread concerns that market prices were too high following a strong run over the past year that pushed many indexes to record highs. He added that as long as the recent rise in bond yields moderates, the bank is confident that market conditions will remain orderly.
Energy companies also fell.
"However once this kind of stampede starts it's hard to stop".
On Monday, the Dow had its biggest percentage decline since 2011, dropping 4.6 percent.
The Hong Kong stocks closed down 1,649.80 points, or 5.12 percent, to 30,595.42 points. The Nasdaq composite rose 2.1 per cent to 7,115.88. All three were lower earlier.
"In the 'old days, when good news was reported, the Stock Market would go up".
Stephen Schwarzman, the chairman and CEO of Blackstone, warned recently at the World Economic Forum of a potential "reckoning" in markets.
Investors were eyeing the recent steep slide as an opportunity, an extreme example of the "buying the dip" that has symbolized the market's steady climb to record highs.
Costa told Xinhua that he did not think the sell-off would change the trajectory of the stocks market of the year.
ENERGY: Oil prices have seen extended losses since the USA government said last week that oil production jumped.
The Standard & Poor's 500 index was down 8 points, or 0.3 percent, at 2,639. Falls like this have not been registered since August 2011 when investors were fretting over Europe's debt crisis and the debt ceiling impasse in Washington that prompted a USA credit rating downgrade.