In what's been a historically volatile week for markets, each of the major USA averages lost more than 3.7% in trading on Thursday with the Dow's 4.15% decline - which was good for a 1,032-point loss - leading markets lower.
According to James G. Devine, a professor of economics, it is likely that stock prices were too high before the crash and this is only an adjustment, or "correction", toward what they should have been. South Korea's Kospi, which saw only modest losses on Tuesday, fell back by midday, losing 0.7 percent to 2,435.05.
The 1,175-point drop in the Dow Monday - about 4.6 percent of its value - capped two days of losses that have erased the stock market's gains for the year. The Nasdaq Composite Index tumbled 274.82 points, or 3.90 percent, to 6,777.16.
Stock exchanges around the globe felt ripple effects Tuesday morning from the drop on Wall Street a day earlier.
Traders remain on edge after the resurgent threat of inflation and higher bond yields had helped trigger the burst of volatility and a pullback across the overheated global equity market. USA crude oil fell 1.2 percent to settle at $63.39 a barrel, while Brent dropped 1.1% to settle at $66.86.
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"While today would be crucial in seeing if the bulls can wrestle back control for Asian markets, it does appear that we have finally entered a period of increased volatility", says Jingyi Pan, market strategist at IG in Singapore.
The Dow closed down 666 points, or 2.5 percent - the largest percentage decline since the tumult surrounding Brexit in June 2016.
Elsewhere, the Nasdaq 100 closed down 3.77%, and the S&P 500 closed 4.08%.
The previous record for daily point losses in the Dow's 120-year history was set on September 29, 2008 at the start of the global financial crisis, when the Dow fell 777.68 points.
In Toronto, the S&P/TSX composite index was lower by 0.7 per cent at 15,222 points - marking its seventh consecutive day of declines.
He says it's hard to say right now where the stock market is headed. The Dow soared by 5,000 points - it has never done that in a single year.
Analysts cited higher Treasury bond yields as the catalyst for Thursday's drop, coupled with the view that the market surged to unsustainably high levels in December and January in the euphoria over United States tax reform.