While Friday's market rout came amid USA wage data on Friday that pointed to quickening inflation, which would lead to higher rates and, in turn, rising borrowing costs for companies, the selling Monday came amid few major data points. After numerous turns higher and lower, it wound up with a gain, coincidentally, of 567. Those including technology companies, banks, and retailers and travel companies and homebuilders.
"And this has really triggered a spike in volatility because it's brought into question where higher interest rates are going to curtail the global growth story or erode corporate profitability".
It's a big shift from 2017 and the beginning of 2018, when the stock market went the longest period ever without tumbling.
Coupe said the volatility is rising because investors are undecided whether stocks or bonds are the better bet at the moment.
The benchmark 10-year US note yield rose to 2.88 percent before slipping to 2.848 percent Thursday, holding around multi-year highs.
After starting the day deep in negative territory, and lingering in a neutral zone for much of the sessions, the Dow surged in the final 90 minutes of trading to end the day sharply up.
The stock market has been on a bull run for the past nine years, helped by a growing economy, strong corporate earnings and an extremely loose monetary policy by central banks.
Feb 6 (Reuters) - Dow futures pointed to a third straight day of losses on Tuesday, deepening a correction to the stock market's long-running rally that saw the biggest intraday fall in history for the Dow Jones Industrial Average on Monday. That's less than the 10 percent drop that is known on Wall Street as a "correction".
"Corrections are a normal part of the investing process and not a reason to sell quality investments", said Alan Skrainka, chief investment officer at Cornerstone Wealth Management in Des Peres, Missouri. The current bull market has run on for almost nine years now, making it the second longest in history. "People will be afraid now of shorting volatility".
Chicago Federal Reserve President Charles Evans recently said he continues to expect the US inflation rate to hit the central bank's 2% goal as soon as the end of 2019, adding that the next increase to interest rates could wait until mid-2018.
Investors were eyeing the recent steep slide as an opportunity, an extreme example of the "buying the dip" that has symbolized the market's steady climb to record highs. The information fanned fears that inflation would soon tick upward, leading regulators to raise interest rates. They also experienced corrections.
"We are concerned there'll be more volatility". Prices and yields move in opposite directions, and bond buyers will want a higher yield (and lower price) to make it worth their investment.
Travel bookings site TripAdvisor was one of only two S&P 500 companies that finished higher on Monday.
Wholesale gasoline dropped 4 cents to $1.81 a gallon. It lost 3.4 per cent.
Consider this: The S&P 500 has risen or fallen 1% five times in the past two weeks.
Investors often buy gold when they're anxious about market volatility, but they aren't doing that now.
The S&P energy index was up more than 1 percent, led by Anadarko Petroleum's 5 percent gain and an uptick in oil prices. Hong Kong's Hang Seng fell 0.9% while Japan's Nikkei 225 stock average closed up 0.2%. Germany's DAX lost 2.6 percent while France's CAC 40 ended down 2 percent.