Market rout: US stocks bounce back; Dow trades in almost 1,000-points range

US stocks rebounded in volatile afternoon trading on Tuesday, with major indexes up more than 1 per cent following the biggest one-day drops for the S&P 500 and the Dow in more than six years.

Stocks swung from negative to positive after indexes started the session 2 per cent lower, underscoring a return of volatility to a market that until recently was marked by an absence of major shifts. The Dow had a more than 1,000-point difference between its high and low on Tuesday.

The sharp declines in recent days marked a pullback that had been long-awaited by investors after the market minted record high after record high in a relatively calm ascent.