U.S. stocks closed lower, after a failed attempt to rally, as investor confidence waned amid continued concerns about China and global growth.
Traders said the bond market was focused on how equities were trading and the stock market's sharp reversal pushed bond prices off their lows.
U.S. stock index futures pointed to a sharply higher open following the stellar close seen on Wednesday.
Oil bounced back from heavy losses but global oversupply and worries over the economic slowdown in China kept prices near 6-1/2-year lows.
Gold fell more than 1 percent on Tuesday after an interest rate cut from China helped global markets rebound from the previous day's rout.
The dollar rose on Tuesday, earning a breather from a slide to seven-month lows against the yen as U.S. Treasury bond yields climbed higher.
U.S. stock index futures pointed to a higher open on Wednesday after a highly-volatile session for China's Shanghai Composite.
The mayhem in Chinese equity markets showed no signs of abating on Tuesday, with the Shanghai Composite index settling below the key 3,000 mark.
U.S. stocks plunged more than 3.5 percent, closing off session lows in high volume trade as fears of slowing growth in China pressured global stocks.
Bonds flipped between negative and positive territory as concerns about economic growth pushed the 10-year note yield to lowest level since April.
Gold turned lower on Monday, as the dollar pared losses, and U.S. shares and other commodity markets staged a comeback.
Oil prices fell to fresh 6½-year lows at the session bottom on Monday as markets worried about a China-led global economic slowdown.
The euro hit a 6 1/2-month high and the yen struck a peak against the dollar as investors flocked to safe haven currencies.
Asian investors made a stampede for the exit on Monday on the back of growing fears surrounding the health of China's economy.
U.S. stocks closed deep in the red as global growth concerns accelerated selling pressure to push the Dow and Nasdaq into correction territory.
U.S. government yields were slightly higher Friday, as investors continued to digest Wednesday's Fed minutes.
U.S. stock index futures pointed to a sharply higher open on Tuesday, recovering from the plunge seen in global stocks on Monday.
U.S. oil prices recorded their eighth consecutive week of falls, the longest losing streak since 1986.
The dollar tumbled more than 1 percent against the euro and the yen on Friday.
Gold rose in choppy dealings on Friday, hitting a six-week high and putting it on track for its biggest weekly climb since mid-January.
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