Tech is leading the stock market rebound

Look away

The Dow took an early dive of 567 points shortly after the opening bell Tuesday, then surged as much as 367 points in the next half an hour.

The FTSE 100 is up 71.17 points to 7,212.57 as of 1.08pm GMT.

The Shanghai Composite Index dipped 5.5 percent but recovered slightly to end morning trading down 4.1 percent at 3,127.91. The VIX closed up about 24 percent.

In Europe, Germany's DAX fell 1.2 percent, while France's CAC 40 lost 1.2 percent. European indexes were down about 2 percent, while Japan's Nikkei lost 4.7 percent.

'While rising oil prices and hard landing concerns around China have failed to spook markets, fears that rising inflation may force policymakers into hiking rates quicker than predicted seems to have triggered the recent panic, ' he says. Markets fall. Or do they?

The pan-European FTSEurofirst 300 index rose 2.02 percent and MSCI's gauge of stocks across the globe gained 0.06 percent.

How are global markets reacting?

"There's some big-money players that have really leveraged to the low rates forever, and they have to unwind those trades", said Doug Cote, chief market strategist at Voya Investment Management. "Certainly no one is fully surprised by it", said Halverson. But by lunchtime heavy trading returned with the markets experiencing sharp swings. That's less true for China, whose financial markets are more cloistered from global investors.

US stocks rallied Tuesday as a late surge helped them regain nearly half their losses from the day before, when they had their biggest plunge in 6 ½ years amid heavy trading and huge swings for the market.

The turmoil began late last week amid fears of increasing inflation, when the Dow lost 1,175 points - the biggest one-day points loss in its 122-year history. The Nasdaq Composite soared 148 points to 7,115 - a 2.13 percent hike. At its worst on Monday, the Dow was down more than 1,500 points.

The S&P 500 gave up 44 points, or 1.7 percent, to 2,637.

At 10.53am ET (9.23pm IST) on Wednesday, the Dow Jones Industrial Average was up 249.57 points, or 1%, at 25,162.34.

The Fed started raising rates two years ago. Earlier, volatile equity markets led investors to seek out lower-risk bonds, but many investors remained nervous after a week-long bond rout sent yields on Monday to four-year highs.

Bitcoin fell again on February 6 by 12 percent and was valued below $6,000 for the first time in 2018. Some also question the possible role of computer-driven algorithmic trading in the precipitous declines or even the ramifications of the rise and fall in the value of virtual currencies, notably bitcoin.

The dollar fell to 109.33 yen from 109.70 yen. The euro held steady at $1.2248.

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.

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