Both the U.S. and European shares suffered a setback amidst fears that the recent attack by Iranian forces against bases in Iraq housing American troops might lead to an immediate military escalation.
But these fears were immediately allayed when President Donald Trump tweeted that "All is well!", and "So far, so good!".
Hopes grew all the more when Iran's Foreign Minister Mohammad Javad Zarif also sent this message on Tweeter that "Iranians do not seek escalation or war".
Because of this, the S&P500 futures that went down by almost 2% at one point were trading just 0.10% lower at 0830 GMT while the Asian equities closed off their lows and the Japanese yen started to stabilize.
Oil prices was at 1% higher while gold remained at its new seven-year highs after the missile attack on Ain Al-Asad air base and Erbil in Iraq.
All three U.S. indexes fell but slowly gained back most of their earlier falls while the Asian losses were greater. The Chinese shares closed more than 1% lower, while the Nikkei lost 1.6% and MSCI fell 0.6%.
The 10-year U.S. Treasury notes remained at 1.7951 after closing 1.825% lower Tuesday but well above its session low of about 1.705%. The German 10-year yields also was at minus 0.287% after recovering from an earlier low of minus 0.299%.