Dow plunges more than 1100 points in biggest one-day decline

The Dow and the S&P 500 are each down just over 10%, respectively, from their all-time highs.

A trader works on the floor of the New York Stock Exchange shortly after the opening of the markets in New York October 14, 2015.

In the same period, the S&P 500 shed some $2.5 trillion. “People were positioned for low volatility, low interest rates, and low inflation“, said Brent Schutte, chief investment strategist at Northwestern Mutual Wealth Management. “Is there more inflation down the road than we’re expecting?” The Dow fell by more than 1,000 points on both Monday and Thursday. The S&P 500 was up 38 points, or 1.5 percent, to close at 2,619, and the tech-heavy Nasdaq composite closed 1.4 percent higher, at 6,874.

Oil prices were down after data showed US crude output had reached record highs and the North Sea’s largest crude pipeline reopened following an outage. On Thursday, stocks fell another 4 percent, adding to the concerns that a deeper correction is in motion for Wall Street.

The fact that the index has reached such lofty heights means that, in percentage terms, big points losses are less damaging.

Almost 80 per cent of U.S. companies that have reported so far this earnings season have surprised analysts to the upside. If rates rise quickly, that argument becomes much less persuasive.

Bond prices fell slightly.

That sign of inflation has market participants anxious that the Federal Reserve will increase interest rates, perhaps more aggressively than the three rate hikes already expected for this year. Delwiche said. “And that is a process that is playing out”.

S. stocks overnight, a slump in Chinese shares and worries over rising borrowing costs and volatility took their toll on equity markets in Europe and Asia as well.

Stocks are sinking again Thursday, extending a streak of losses that has yanked the market away from record highs.

Bargain hunting may contribute to early strength on Wall Street after the steep losses seen in the previous session dragged the major averages down to their lowest levels in about two months. “What we have now is what I call fear of getting caught”, said Tom Martin, senior portfolio manager with Globalt Investments. The S&P 500 has fallen more than 10 percent since January, closing Thursday afternoon at 2,581. (NYSE:AOI). Shares of AOI are soaring after the company reported better-than-expected fiscal third-quarter earnings, and in response, touched a 13-month high of $18.65.

Major stock market indices may be back up Friday, but the recent correction didn’t come without its pain. You might have had day traders trying to get out at the end of the day. It was the first time weekly volume eclipsed 50 billion since August 2015. GrubHub jumped $21.44, or 30.7 percent, to $91.34, while Yum Brands dipped $1.22, or 1.5 percent, to $78.91.