As the adage goes, the stock market takes the steps up and the elevator down.
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.
Andre Bakhos, Managing Director at New Jersey-based New Vines Capital said "The one thing I could say with confidence is that volatility has suddenly come back into the market".
"However once this kind of stampede starts it's hard to stop".
What began as a Wall Street plunge spread into Asian trading on Tuesday with the Nikkei 225 falling almost 4.8% from close to close.
Latest data from Thomson Reuters showed that the S&P 500 companies' blended earnings in the fourth quarter of 2017 are expected to rise by 14.7 percent year on year, while the revenues are forecast to increase by 8.0 percent.
The selling has persisted into European trading hours, though at a more moderate pace. At one point the massive index was down a whopping 7%. Heating oil dipped 3 cents to $1.99 a gallon.
On Wall Street, many companies that rose the most over the a year ago have borne the brunt of the selling.
Stephen Schwarzman, the chairman and CEO of Blackstone, warned recently at the World Economic Forum of a potential "reckoning" in markets.
Major indexes in Asia and Europe sank Tuesday and USA markets started sharply lower, zigzagging between gains and losses. "The high valued nature of stocks and a new element of inflation has brought me to question whether the uptrend in equities can continue as the same speed and trajectory for the beginning of 2018".
Global markets also fell.
The Dow surged in final 90 minutes to end the day sharply up. "I'd characterize what we've seen over the past year as abnormal", said Sameer Samana, global equity and technical strategist at Wells Fargo Investment Institute in St. Louis.
The potential addition to the U.S debt, compounded by the $1.5-trillion GOP tax cuts, has investors anxious about increased borrowing costs as interest rates spike.
Much could hinge on the open on Wall Street and futures markets are predicting a modest improvement - Dow futures and the broader S&P 500 futures are up 0.6 per cent at 1.2 per cent, respectively.
Sharp drops on Friday and Monday erased the gains the Dow and S&P 500 made this year.
In oil markets, Brent fell 0.86 per cent to US$68.09 a barrel and USA crude dropped 0.76 per cent to $65.07.
Toronto's TSX index also felt the pressure, tumbling 271 points, closing at 15,334.81. He said investors are now selling because they are afraid of bigger losses if they stand pat. Gold was off at US$1,334.92 an ounce after losing 1 per cent on Friday.
In Tokyo the Nikkei 225 index rose 1.1 percent.
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