Shares in Asia also closed down sharply, with Japan's main Nikkei index suffering its biggest one-day drop since the 1987 stock market crash and Hong Kong's Hang Seng slumping to a three-year low.

BBC: Bush vows to stabilise US economy

Wall Street's performance followed a rebound on world markets that saw Japan's Nikkei up 6.4 percent and Hong Kong's Hang Seng post its biggest single-day gain in more than a decade.

NPR: Stocks Up On Interest Rate Expectations

Japan's Nikkei Stock Average fell 0.5% for a third-straight day, and Hong Kong's Hang Seng Index shed 1%.

WSJ: Dow Lays an Egg on Week

Hong Kong's Hang Seng Index and India's Sensex index both hit 52-week highs, climbing 0.6% and 1.2%, respectively.

WSJ: Tech Shares Buoy Blue Chips

Hong Kong's Hang Seng Index rose 1.3%, snapping a four-session losing streak.

WSJ: Stocks Finish in the Red

One of Thursday's worst-performing stock markets in the region was Hong Kong's, where the Hang Seng Index dropped 2% to 19025.11, dragged down by bank, telecom and consumption stocks.

WSJ: Slowdown Signals Sock Asia Markets

Over the past year the stock price of Hong Kong-listed VTech has more than doubled, at a time when the local Hang Seng index has plummeted and local real estate values have collapsed.

FORBES: The VTech phenomenon