What it means that stocks are in a 'correction'

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Despite the turbulence, Tuesday's trading looked similar to the patterns that have shaped the market for the a year ago: investors bought companies that do well when economic growth is strongest. The index is down 15.4% since hitting a recent peak in late January.

The biggest losses went to high-dividend companies including utility and real estate companies, as bond yields increased after a sharp drop on Monday. It fell 76 cents, or 1.2 percent, to close at $63.39 a barrel in NY. The Nasdaq plummeted 275 points to close at 6,777. Ten-year Treasury yields retreated from close to their four-year highs as stocks fell, while the yen found traction as a haven from the stock turmoil.

Thursday's slide put the S&P 500 back into negative territory for the year, down 3.5 percent.

Despite traders attempting to fix the damage, at close the Dow remained down by 1,175 points, the worst closing point decline ever recorded.

The Dow gained 130 points, or 0.5 percent, to 23,990.

"These are the early days of the flu", Johnson told CNBC's "Trading Nation" on Thursday.

White House spokesman Raj Shah expressed concern about the drop in stocks, but continued to point to robust employment data and corporate earnings as signs that "long term fundamentals demonstrate a healthy economy".

Tuesday's rebound came 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 yield on the 10-year note was as low as 2.04 percent as recently as September. The last bear market was during the 2008 financial crisis.

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An early gain in the market quickly evaporated and the selling intensified in the afternoon.

The FTSE 100 fell 0.4% in opening trading but rebounded later in the morning, proving more resilient than United States markets which suffered losses of more than 4% in yesterday's trading. Brent crude, the global standards, lost 57 cents to $67.06 a barrel in London.

The upswing comes just a day after the Dow fell 1,032 points on Thursday - the second drop of such a magnitude this week.

Tuesday's wild trading session saw the Dow swing more than 1,100 points from its low to its high and ended with the benchmark S&P 500 tallying its best day since just before President Donald Trump's November 2016 election. Hong Kong's Hang Seng skidded 5.1 percent and South Korea's Kospi declined 1.5 percent.

Fidelity International's chief investment officer for Japan, Takashi Maruyama, said the "massive volatility" was a reaction to the rapid rise on the Japanese market since previous year.

The American flag flies above the Wall Street entrance to the New York Stock Exchange in New York, Nov. 13, 2015.

"You don't want to move too much too soon", Coupe said.

After swinging up and down several times, the Dow Jones industrial average ended the day up 330 points, or 1.4 percent, at 24,191. Since hitting a record on January 26, the index has lost $2 trillion in market value. The latest inflation figures are anemic at 1.7 percent. It was up as much as 349 shortly after the opening bell. The FTSE 100 index of leading British shares was 1.9 percent lower at 7,194 while the CAC 40 in France fell 2.4 percent to 5,160.

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