"Bond markets are not hugely attractive".
At 4pm on Tuesday, however, the FTSE 100 showed some recovery and was 123 points down or 1.68%. That can have the effect of slowing economic growth by making it more expensive to borrow for all kinds of things - from home mortgages to car loans and credit card debt.
"Since last autumn, investors had been betting on the 'Goldilocks' economy - solid economic expansion, improving corporate earnings and stable inflation. The sharp drop in the afternoon seemed to be mainly programmed trading", said Scott Brown, chief economist at Raymond James.
The Dow ended at 24,345.
The tech-heavy Nasdaq composite rose 0.1 per cent to 6,978.21. Corrections are seen as entirely normal and even helpful in curbing excessive gains during bull markets.
"Seemingly the only hope for the markets at the moment is that investors suddenly decide that the sell-off has been a bit overdone", said Connor Campbell, a financial analyst at Spreadex.
On Monday, the Dow finished down 4.6 percent while the S&P 500 sank 4.1 percent.
The plunge pushed stocks closer to what's called a correction, or a 10 per cent decline from their most recent high point. It's a major of how those stocks are done either up or down.
The FTSE's drop marks its biggest one-day fall since the day after Britain voted to leave the European Union in a referendum held on June 23, 2016.
The slide Monday brought the Dow back just below 25,000 points, a level it first crossed a month ago.
"There are four stages of a fall: hope, greed, panic and fear".
The stock selloff had been viewed by some as a healthy correction following their rapid rise over the last year but, as it snowballed through Asia and then Europe, nerves were starting to fray. After Friday's jobs report, the benchmark yield reached 2.85% its highest since 2014.
The Canadian dollar was trading at 79.80 cents US, down from Monday's average price of 80.11 cents.
Commodities remained gloomy, with oil and industrial metals all falling as the year's stellar start for risk assets rapidly soured.
Gold prices fell by 0.1 percent to $ 336.50 per troy ounce.
What happened to the Dow?The Nasdaq composite lost 14 points, or 0.2 percent, to 7,225.
Other banks also fell. Gainers included technology companies, retailers like Amazon and Home Depot, and industrial companies and banks.