Wall Street slumped more than 1100 points or 4.6 per cent on Tuesday (AEDT), extending Friday's hefty drop amid inflation concerns potentially forcing a quicker pace of interest rate rises by the US Federal Reserve.

The Dow Jones tumbled more than 1500 points at one stage during a frantic trading session.

Australian share index futures point to a drop of more than 100 points or two per cent when trading gets underway on Tuesday and after a fall of 1.6 per cent on Monday.

Treasurer Scott Morrison believes the big dive on the US stock market is a recalibration associated with recent economic data.

He told reporters in Canberra the market was reacting to last week's US wage data and more bullish sentiment about what's happening with inflation and its impact on bond markets.

"Markets are volatile - when they recalibrate in relation to events like this you do see a bit of these events happening," he said.

"But people who watch these markets more and participate in them more closely than I do, I think, will see this for what it is and understand the forces behind it."

Share market volatility aside, Trade Minister Steven Ciobo says the Australian economy is behaving "exceptionally strongly".

"We are seeking really strong economic growth in Australia, we are seeing great employment creation," he told Sky News.