The market's main gauge of volatility, the Chicago Board Options Exchange (CBOE) Volatility Index, fell to 29.82 on Thursday, more than twice what it was a week ago but down off a two-and-a-half year high above 50 points hit on Tuesday. Brent crude, the benchmark for worldwide oil prices, lost 76 cents, or 1.1 percent, to $66.86 a barrel in London. This makes it the second time the traditional market would be falling within four days by more than 1,000 points. By Tuesday, it was once again slightly higher for 2018.
Though US markets had fallen on opening, trading during the morning had been relatively subdued.
Still, both the Dow and S&P 500 lost more than 5 percent for the week. The selling spread to overseas markets.
The index is still hovering near correction territory after reaching a record high of 26,616 on January 26.
The FTSE 100 shut down by nearly 100 points lower this afternoon as the global stock market started to crack.
"There have been a couple of bad days, [but] if you go back to the day he was elected, we're up by about a third", Hassett said.
Financial analysts regard corrections as a normal event but say the latest unusually abrupt plunge might have been triggered by a combination of events that rattled investors.
Treasury Secretary Steven Mnuchin appeared at a previously scheduled hearing on Capitol Hill, where he urged lawmakers to focus on the economy's strong fundamentals.
Global markets fell on Friday, following the Dow's decline on Thursday.
Stocks are mixed in the early going as traders digest a batch of company earnings reports.
United States markets continued to be volatile Thursday morning as the Dow Jones Industrial Average slumped about 205 points in the opening hour of trading to 24,687.
By midday it was up 30 points, or 0.2 percent, at 24,395.
Germany's 10-year yield climbed two basis points to 0.76 percent. The Nasdaq composite was little changed at 6,968.
Asian markets fell more sharply.
The new contraction overnight occurred amid concern that the US Federal Reserve will raise its benchmark interest rate faster than expected due to rising US inflation.
The market performance also reflects the strong US and global economies, which have boosted corporate profits.
West Texas Intermediate crude declined 2.2 percent to $60.41 a barrel.
The Stoxx Europe 600 Index dipped 1.6 percent. Chipmaker Nvidia added $14.56, or 6.7 percent, to $232.08.
"The S&P 500 hasn't moved into correction mode this quickly, ever", said Lindsey Bell, investment strategist at CFRA Research. Investors remain fearful that signs of rising inflation and higher interest rates could bring an end to the bull market that has sent stocks to record high after record high in recent years.
The Standard & Poor's 500 index was down 8 points, or 0.3 percent, at 2,639.
What it means that stocks are in a 'correction'
Many market watchers have been predicting a pullback, saying stock prices have become too expensive relative to company earnings. Machine-driven trading via computer algorithms has been cited by many market watchers as making the selling frenzy more violent.
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