It's a big shift from 2017 and the beginning of 2018, when the stock market went the longest period ever without tumbling.
The Dow Jones industrial average fell 4.15% to 23,860 points, just three days after falling 4.6% on Monday.
While decline on a stock market can point towards a coming recession, they are really measuring different things - recession simply refers to two consecutive quarters of GDP decline.
This means that the market, at least based on the Dow, is in an official "correction", which is defined as a 10% drop or more.
Plus, 2 stocks smacked by Amazon; the cybersecurity stock thwarting shorts; and a rotten day for Expedia. The Nasdaq rose 69 points, or 1 percent, to 6,847. In 1987, the Dow plunged 508 points in one day-and sustained a loss of 22.6%, the largest one-day decline in the Dow's history. This has investors searching for answers.
That concern has prompted the pullback from stocks. This week, the Dow has travelled about 20,000 points this week as it gyrated wildly between positive and negative territory.
On Friday alone, the S&P 500 swung from gains of up to 2.2 percent to declines of 1.9 percent, echoing the big swings of the past week.
However, while there are reasons not to get too anxious, there's still no way of knowing whether the current correction could become a "bear market" or a crash. As our economy continues to surge, the financial markets fear it will start driving prices for goods and services higher.
Analysts cited higher Treasury bond yields as the catalyst for the drop, coupled with the view that the market surged to unsustainably high levels in December and January in the euphoria over United States tax reform.
U.S. equities suffered its second sell-off in a week to hit 2018-lows with the Dow Jones and S&P 500 both entering what is deemed correction territory. But in January, annualized wage growth shot up to 2.9 percent, its fastest pace in eight years. But the Fed is expected to raise rates three times this year.
Consumer discretionary stocks slipped 0.8 per cent, with Canada Goose down 4.5 per cent and Dollarama off 3.25 per cent. But if inflation shows signs of accelerating, the Fed will raise rates higher and faster than now expected-which would likely kill the nine-year-old bull market.
The global sell-off began last week after a solid United States jobs report fuelled expectations that the Federal Reserve would need to raise interest rates faster than expected, because of the strength of the economy.
Investors also pointed to additional pressure from the violent unwinding of trades linked to bets on volatility staying low. Both times, the market dipped considerably but then came back very quickly. Manufacturing is rebounding. Households and businesses are spending freely.