Dow Jones recovers after 500-points plunge

Volatility in the global markets continued for the third day on Tuesday as the Dow Jones industrial average first witnessed plunge of 550 points then recovered as much as 350 points after an early morning trading.

Stocks went into free fall on Monday, and the Dow plunged almost 1,600 points -- easily the biggest point decline in history during a trading day. At the closing bell, the Dow was still down 1,175 points, by far its worst closing point decline on record.

And the rout in U.S. markets continued to ripple around the globe. Japan's Nikkei index plunged 4% in Tuesday morning trading while the S&P/ASX 200 in Australia dropped 3 percent.

The panic began Friday as investors worried that accelerating inflation and higher interest rates could derail the market's record-setting rally.