Stocks on Wall Street struggled to claw back their losses on Wednesday after fears about prolonged inflation and rising interest rates prompted the worst day for US equity markets since May during the previous session.

The blue-chip S&P 500 share index rose 0.2 per cent, recouping only a small portion of the declines it tallied on Tuesday when the benchmark fell 2 per cent. The technology-focused Nasdaq slid a further 0.2 per cent following its 2.8 per cent decline the previous session.

The performance was weaker than in European markets, where the continent-wide Stoxx 600 advanced 0.6 per cent, and Germany’s Dax rose 0.8 per cent.

The slide on Tuesday captivated money managers, not least because it followed a turbulent trading day on the previous Monday that had taken some of the air out of a rally that has now stretched into its 18th month.

Last week policymakers at the US Federal Reserve and Bank of England indicated that…

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