The S&P 500 and Nasdaq has ended higher, with big growth shares rising after the previous day's sell-off as Treasury yields eased.
At the same time, bank shares fell.
The yield on the benchmark 10-year note tumbled from more than a three-year high to below 3.0 per cent.
The day's trading was choppy, with major indexes moving between gains and losses as investors were also nervous ahead of the release of Wednesday's US consumer price index data and Thursday's producer prices data.
Investors will be looking for signs that inflation is peaking.
Worries that the US Federal Reserve may have to move more aggressively to curb inflation have driven the recent sell-off in the market.
A host of other concerns have added to the pressure.
"At this point, it's just fear-based selling," said Jake Dollarhide, chief executive officer of Longbow Asset Management in Tulsa, Oklahoma.
"It can't just be the Fed's going to raise rates to stave off inflation, because we've seen that before," he said.
Instead, investors are worried about everything from rates and inflation to the war in Ukraine, supply chain problems and China's COVID-19 lockdowns, Dollarhide said.
Shares of Apple Inc were higher, giving the S&P 500 and Nasdaq their biggest boost.
S&P 500 technology led gains among sectors in the S&P 500.
The S&P 500 gained 10.77 points, or 0.27 per cent, to end at 4,002.01 points while the Nasdaq Composite gained 114.11 points, or 0.98 per cent, to 11,737.35 and the Dow Jones Industrial Average fell 82.39 points, or 0.26 per cent, to 32,163.31.
Investors digested comments from Cleveland Fed President Loretta Mester, who said the US economy will experience turbulence from the Fed's efforts to bring down inflation running at more than three times above its goal and recent volatility in the stock market would not deter policymakers.
Peloton Interactive Inc tumbled as the fitness equipment maker warned the business was "thinly capitalised" after it posted a 23.6 per cent slide in quarterly revenue.