The original trigger for the US stock market sell-off was a sharp rise in USA bond yields late last week, after data showed US wages increasing at the fastest pace since 2009.
Investors remain fearful over the prospect of rising interest rates, which could bring an end to the bullish market.
The Dow finished 567.02 points higher, or 2.3 percent, at 24,912.77. The Standard & Poor's 500 index lost 0.5 percent to 2,681.66. The S&P 500 is up almost 292 percent since bottoming in early 2009.
The market's sharp drop began on Friday as investors anxious that creeping signs of higher inflation might push the U.S. Federal Reserve to raise interest rates more quickly, which could slow down economic growth by making it more expensive for people and businesses to borrow money.
The Dow Jones dipped less than 0.1%, while the S&P 500 fell about 0.5% and the Nasdaq dropped 0.9%.
Trading has been turbulent all day.
Irish markets followed the broader European trade and the Iseq overall index had retreated 1.73 per cent in the early afternoon after having fallen as much as 3 per cent after the market open. There hasn't been one in two years, and by many measures stocks had been looking expensive.
Kohli magic leads India to big win over South Africa
The latest player to join the list was wicketkeeper-batsman Quinton de Kock, who suffered a wrist injury in the second ODI. Unfazed, Kohli continued to accumulate runs at a steady pace, going to his century in the 40th over off just 120 balls.
Australia's S&P/ASX 200 was up 1.0 percent at 5,889.60.
Big dividend companies including utility and real estate companies fell, as bond yields increased after a sharp drop on Monday.
On Friday, the rate on the 10-year Treasury note jumped to a four-year high.
"What we're seeing in the stock market is some investors looking at the success of the stock market over the last little while and considering whether that success is appropriate, based on expectations".
Wall Street's plunge sent shudders across global financial markets.
The Fed could raise interest rates more quickly than investors are prepared for if inflation accelerates at too fast a pace.
After all, the global economy continues to grow strongly and corporate earnings are largely good.
Rick Meckler, president of investment firm LibertyView Capital Management, said: "It's over in terms of the severe down move we've seen but reminds us that we're kind of in an aftershock phase".
Tottenham Hotspur vs Newport County, FA Cup replay
Spurs were comfortable but were unable to break down the solid back line of Newport , who were cheered on by 7200 travelling fans. Newport almost delivered the shock of the fourth round with an improbable victory over Tottenham in the match at Rodney Parade.
Schutte said that as central banks stop propping up the market, trading will probably be more volatile in the next few years.
The U.S. dollar remained resilient despite the stock market sell-off, which at one stage Monday saw the Dow shed 1,597 points. Market volatility, which has been historically low in recent months, spiked, with the Cboe Volatility Index, commonly considered a gauge of investor fear, jumping by more than 100 percent.
Shares of Canada's big banks were among the biggest losers during the market rout with Toronto-Dominion Bank down nearly one per cent, and Royal Bank lower by 0.6 per cent. That could further upset markets, which have seen an unusual lack of volatility for more than a year. The Nasdaq composite climbed 40 points, or 0.5 percent, to 7,003.
In Asia, Japan's Nikkei 225 index pulled back from early highs to add 0.2%, while Hong Kong's Hang Seng lost 0.8%.
In other commodities trading, copper fell 3 cents to $3.19 a pound.
CURRENCIES: The dollar edged up to 109.38 yen from 109.33 yen. The euro slipped to $1.2372 from $1.2377.
On Monday, S&P 500 biggest losing stock was Wells Fargo.
Monday's decline extended the 666-point drop that happened Friday, a drop of about 2.5 percent.
Crude Oil Tumbles Along With Global Stocks
Oil prices decline on Tuesday after the fall of global stock markets against the backdrop of the strengthening of the USA dollar. Gasoline stocks rose by 3.4 million barrels, compared with analysts' expectations in a Reuters poll for a 459,000-barrel gain.
- US House panel votes to release Democrats' rebuttal memo
- Wall Street dips but trading still volatile
- Oklahoma City Thunder's Russell Westbrook, Carmelo Anthony questionable against Lakers
- Conte to stay as Chelsea boss despite loss to Watford
- MVP Foles outshines Patriots' Brady with 'Philly Special'
- ESPN To Enter The Streaming Service Business With ESPN Plus
- House passes stopgap bill to prevent government shutdown; faces changes in Senate
- Germany gets new government, and Merkel becomes Chancellor
- Winter Weather Advisory Issued from 4 pm to Midnight Monday
- Sensex, Nifty touch fresh record highs on International Monetary Fund booster