Wall St bounces back 1 pct after Thursday's slump

Wall St bounces back 1 pct after Thursday's slump

Emerging market stocks lost 0.24 percent.

Monday's slump in USA stocks was a break from many months of relative steady gains and left market participants grappling with an implosion of products that bet against volatility.

Major indexes in Asia and Europe took steep losses and USA markets started sharply lower, only to repeatedly change direction. Whether this is a major correction like the one that happened in 2008, or if it's just a healthy, standard correction that happens as a part of normal market cycles, time will certainly tell. The Dow plunged more than 1,000 points for the second time in four days.

British markets closed Tuesday 1.5 percent lower, ending the day with the lowest close since December 7.

But inevitably, investors took advantage of the low prices to come back into the market, sending the key indexes higher. Brent crude gave up 70 cents, or 1.1 percent, to $US64.81 per barrel.

The US stock market is facing a possible third day fall after two days of heavy losses that have undermined faith in the USA stock market's nearly decade-long rally. Microsoft lost 2.3 percent.

A wild session on Tuesday had seen the Dow swing more than 1,100 points from peak to trough and ended with the benchmark S&P 500 recording its best day since just before President Donald Trump's election in 2016.

Corrections are seen as entirely normal occurrences, and the market, now in its second-longest bull run of all time, has not seen one in two years, an unusually long time.

This scale of volatility is rare but the end of 2017 saw huge shifts in the stock market especially with bitcoin value and other cryptocurrencies.

For a market that hadn't fallen 3 per cent from any high in more than a year, the week's action was enough to rattle even the biggest equity bulls. South Korea's Kospi declined 2.9 percent to 2,418.70 and the Shanghai Composite index was off 2.2 percent at 3,412.55.

In and of themselves, corrections aren't something for investors to panic about, according to experts. It's down 181.13 points, or 6.6 per cent, for the week. The Dow quickly recovered much of that loss.

In the energy market, oil prices fell 2.0 percent. The Nasdaq composite rose 2.1 percent to 7,115.88. But the Dow is up 24 percent in the past 12 months and the S&P 500 has gained 18 percent.

Donald Trump, who has attributed the nearly unimpeded rise in stock market valuation to the actions of his administration, has yet to directly address Monday's fall.

In currency trading, the dollar fell to 109.02 yen from 109.54 yen late Tuesday.

Japan's benchmark Nikkei 225 index surged as soon as trading began as investors sought bargains, finishing morning trading up 3.1 percent at 22,270.56. The euro fell to $1.2280 from $1.2392. 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 US credit rating downgrade.