The Dow Jones industrial average and the S&P 500 tumbled into a correction on Thursday.
- US stocks whipsawed on Friday, opening firmly higher but giving up their gains not long after.
- On Thursday, the Dow Jones industrial average and the S&P 500 tumbled into a correction, defined as a 10% drop from their most recent highs.
- Track the Dow at Markets Insider.
US stocks rebounded in late-afternoon trading on Friday, but remained on track to record their worst week since 2009.
At 2:21 p.m. ET, the Dow Jones industrial average was up 75 points, or 0.3% in volatile trading that frequently swung the index between positive and negative territory. It fell by more than 400 points earlier. The S&P 500 was up 14 points (0.6%), and the Nasdaq was up 41 points (0.6%).
The Dow was headed for a weekly decline of 6%, its worst in nearly nine years.
On Friday, the Nasdaq joined the Dow and the S&P 500 in a correction, defined as a 10% drop from the most recent highs.
The worst of the sell-off began last Friday, when data on wages showed that inflation may be picking up and could prompt the Federal Reserve to combat it with higher interest rates. It was amplified this week by so-called target volatility funds that rushed to sell stocks and buy protection against higher volatility.
Illustrating the speed of this week's drop, Ryan Detrick, a senior market strategist at LPL Financial, noted that it was the first time the S&P 500 corrected 10% from an all-time high within nine days.
On Friday, stock markets around the world that opened ahead of the US trading day were in sell-off mode.
Read more coverage of this week's market meltdown:
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One of the biggest narratives behind why the stock market just went haywire is wrong
The Dow Jones industrial average and the S&P 500 tumbled into a correction on Thursday. Read Full Story
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