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The US stock market is facing a possible third day fall after two days of heavy losses that have undermined faith in the U.S. stock market's almost decade-long rally. Analysts are wary of that the fall is just a massive correction to a rally that goes back to 2008 financial crisis. 

This fall has wiped $4 trillion off the value of global shares, with S&P and Dow recording their biggest fall since 2011 when it sank more than 4% on Monday. Concerns remain over rising interest rates and government bonds generates record-high valuations of stocks.

Andre Bakhos, Managing Director at New Jersey-based New Vines Capital said "The one thing I could say with confidence is that volatility has suddenly come back into the market." 

"The declines in markets are steep and vicious and are fostering a feeling of fear which begets irrational behavior. So this market is now driven on fear of rates and wages. That basically means good news now is bad news."

By 8:11 a.m. ET (1311 GMT), Dow e-minis 1YMc1 were down 232 points, or 0.97 percent, with 200,003 contracts changing hands. They had fallen about 850 points in Asian trading.

S&P 500 e-minis ESc1 were down 13.75 points, or 0.53 percent, with 1,173,713 contracts traded. Nasdaq 100 e-minis NQc1 were down 25.75 points, or 0.4 percent, on volume of 207,522 contracts.

"The catalyst for the biggest U.S. equity sell-off for six years is being blamed on a delayed realization that inflation pressures are rising perhaps more quickly than anticipated," said James Knightley, economist at Dutch bank ING.

"As such, this appears to be more of a ‘healthy' correction rather than the start of a broader re-evaluation for earnings."

Global financial markets shivered as Wall Street's slumped with Europe's main bourses down around 2 percent while Japan's Nikkei .N225 dived 4.7 percent, its worst fall since November 2016, to four-month lows.

The surge in the volatility index .VIX and the halting of trading on Tuesday puts in focus the scale of nerves in a handful of exchange-traded funds that allow investors to bet on market swings staying low.