- White Sox heading for worst season in MLB history
- China the top challenge in US history: senior diplomat
- Hong Kong democracy tycoon's son warns time running out
- New migraine drugs no better than cheap painkillers: big study
- Sean 'Diddy' Combs again denied bail in sex trafficking case
- Brewers clinch division title as MLB playoff race heats up
- Man City blunted by 'giant' Inter in Champions League stalemate
- US stocks dip despite larger Fed interest rate cut
- Man City held by Inter as PSG pinch win in Champions League
- All Blacks recall Beauden Barrett for Australia Test
- Fears of all-out war as new Lebanon device blasts kill 20, wound 450
- Spurs late show saves Postecoglou blushes at Coventry
- PSG snatch late goal to beat Champions League debutants Girona
- Gittens' late double gives Dortmund Champions League win at Brugge
- Man City blunted by Inter in Champions League stalemate
- Hidden talent: French Olympic star Marchand opts for disguise
- MrBeast named in California lawsuit over 'Beast Games' show
- Gauff splits with Gilbert as coach after 14-month run
- Hundreds of thousands at risk in Sudan's El-Fasher: UN
- Harvey Weinstein pleads not guilty to new sex crime charge
- Venezuelan opposition candidate says letter conceding election was coerced
- Ukraine official claims Russian advance in Kursk has been 'stopped'
- X update allows app to bypass Brazil ban: internet providers
- Fears of all-out war as new Lebanon device blasts kill 14, wound 450
- US Fed makes aggressive rate cut, weeks before election
- Arsenal's Odegaard faces lengthy injury absence
- India coal expansion risks massive methane growth: report
- China the top challenge in US history, top diplomat says
- US Fed makes larger half-point cut in first reduction since 2020
- Ronaldo's Al Nassr appoint former AC Milan boss Pioli
- Ainslie 'relieved' as British book place in Louis Vuitton Cup final
- Struggling Roma replace sacked icon De Rossi with Ivan Juric
- Women's NBA will add 15th team in Portland in 2026
- Brazil fires need harsher punishment: environmental police boss
- Boeing to start large temporary furloughs amid Seattle strike
- Fears of all-out war as new Lebanon device blasts kill nine, wound 300
- 'Emergency' declared over falling UK butterfly numbers
- McIlroy outlines threats to golf peace deal
- Stock markets, dollar slip before US rate decision
- Russian advance in Kursk 'stopped': Ukraine official to AFP
- UN members demand end to 'unlawful' Israeli occupation of Palestinian territories
- Snapchat pushes 'safer' platform image, but not everyone agrees
- Three dead, 100 wounded in new wave of Lebanon device explosions
- So where does the oceans' plastic waste come from?
- Allied war heroes buried in Netherlands... 80 years on
- Marsh coy over Australia's choice to open alongside Head
- New London sculpture pays tribute to trans community
- Lebanon doctors tell of horror after pager blasts
- McIlroy eyes Wentworth glory after Irish Open collapse
- Italy seen overtaking France as world's largest wine producer
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Wall Street slumps as Fed meets, Europe rebounds
Wall Street stocks sank on Tuesday as the Federal Reserve began a two-day monetary policy meeting, while European stocks rebounded.
The Dow was down 1.0 percent in late morning trading, while the broader S&P 500 fell 1.8 percent and the tech-heavy Nasdaq slumped 2.7 percent as investors brace for Fed plans to wind down its cheap money policies.
In a white-knuckle session on Monday, Wall Street stocks tumbled to multi-month lows on interest rate worries and the prospect of a Russian invasion of Ukraine, before staging a feverish comeback to close with modest gains.
"Notwithstanding yesterday's huge intraday reversal -- one of the largest ever for the Nasdaq -- the stock market isn't necessarily in a celebratory mood," said Patrick O'Hare, analyst at Briefing.com.
"If buyers fail to show up to stem the tide of selling... it could end up being an unruly day that is as unsettling as yesterday's was before the reversal," he added.
European stocks rebounded on Tuesday, shrugging off losses in Asia, with London climbing 1.0 percent, Frankfurt rising 0.8 percent and Paris adding 0.7 percent.
"It's been a rollercoaster start to what was always going to be a massive week in the markets and there's little reason to expect that to change in the coming days," said market analyst Craig Erlam at trading platform OANDA.
World oil prices also advanced while the dollar mostly strengthened.
All attention is now on the Fed's gathering that concludes Wednesday, with investors poring over every word from the bank's statement and boss Jerome Powell's subsequent news conference.
- Fears of new sell-off -
"Investors' hands are already shaking after the bloodbath in equity markets so far in 2022, so that any aggressive moves by the Fed could cause a further sell-off among global shares," said AJ Bell investment director Russ Mould.
"The central bank is fully aware it needs to act carefully, but equally it is unlikely to sit on hands given the inflationary pressures that need addressing."
After spending much of last year playing down the spike in prices, the US central bank has in recent months taken a sharp hawkish turn on monetary policy as officials look to bring inflation -- which is at a four-decade high -- under control.
The International Monetary Fund said Tuesday that inflation is projected to last longer than previously expected as it trimmed its global growth forecast.
Minutes from the most recent Fed meeting indicate it will begin lifting interest rates from March with three or possibly four more hikes before the end of the year.
On top of that, it plans to start offloading its vast bond holdings.
But while the move to battle runaway prices is seen as crucial, the end of the era of ultra-cheap cash for investors has rattled markets after almost two years of uninterrupted gains to record or multi-month highs.
"Volatility is likely to prevail for the moment," noted Interactive Investor analyst Richard Hunter.
Heightened concern about Russia's troop build-up on Ukraine's border has also weighed on investor sentiment.
- Key figures around 1630 GMT -
New York - Dow: DOWN 1.0 percent at 34,023.13 points
EURO STOXX 50: UP 0.7 percent at 4,083.83
London - FTSE 100: UP 1.0 percent at 7,371.46 (close)
Paris - CAC 40: UP 0.7 percent at 6,837.96 (close)
Frankfurt - DAX: UP 0.8 percent at 15,123.87 (close)
Tokyo - Nikkei 225: DOWN 1.7 percent at 27,131.34 (close)
Hong Kong - Hang Seng Index: DOWN 1.7 percent at 24,243.61 (close)
Shanghai - Composite: DOWN 2.6 percent at 3,433.06 (close)
Euro/dollar: DOWN at $1.1280 from $1.1326 late Monday
Pound/dollar: UP at $1.3490 from $1.3488
Euro/pound: DOWN at 83.62 pence from 83.97 pence
Dollar/yen: DOWN at 113.92 yen from 113.95 yen
Brent North Sea crude: UP 1.6 percent at $87.61 per barrel
West Texas Intermediate: UP 1.7 percent at $84.72 per barrel
burs-rl/imm
D.Schneider--BTB