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Dow plunges more than 1000 points as volatile trading continues

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Investors also point to additional pressure from the violent unwinding of trades linked to bets on volatility staying low. On Thursday, it plummeted 3.75 percent in its worst session since the more than 4 percent drop on Monday.

In and of themselves, corrections aren't something for investors to panic about, according to experts.

With Wall Street's quarterly earnings season more than half-way through, 78.3 per cent of the S&P 500 companies that have reported so afar have beaten profit expectations, above the 72 per cent beat-rate in the past four quarters.

Japan's Nikkei 225 average lost 2.8 percent to 21,240.05 in early trading Friday.

NEW YORK -The Dow Jones industrial average plunged more than 1,000 points as a weeklong market swoon continued. In the final hour of United States trading Thursday, the S&P 500 tumbled through 2,600 and the Dow failed to hold 24,000, levels they had jumped past just weeks ago. The broader S&P 500 stock index was also down more than 10% from its all-time highs.

Benchmark 10-year notes last fell 4/32 in price to yield 2.8457 percent, from 2.832 percent late on Wednesday. The British FTSE 100 index fell 2.6 percent.

The Dow Jones industrials are down 800 points, extending the market's losses. That was its biggest loss since August 2011, when stocks were reeling as investors were fearful about European government debt and the US had its credit downgraded after the debt ceiling impasse. Since Friday, markets have been choppy.

"The 10-year rate went back up.so if you start making new territory there, that could start making people very nervous". The Dow soared by 5,000 points - it has never done that in a single year.

So far, the Dow, Standard & Poor's 500 and Nasdaq have not fallen enough to be in a correction. Just after opening bell, the Dow declined 567 points then raced back to a 350-point gain, and by noon EST Tuesday was up 34 points for the day. The index was just below 30 on Thursday, more than twice the levels seen in the past few months. Employers are hiring at a healthy pace, with unemployment at a 17-year low of 4.1 percent.

The Dow was down 501 points, or 2 percent, to 24,397. The S&P 500 rose 1.7% to 2,695. The Nasdaq, which closed at 6,777.16, closed about 20 points above its correction level.

Tuesday's initial sell-off started after stock markets dropped around the world, a domino effect from Wall Street's worst day in years. Spot gold was down 1.0% at $1,326.51 an ounce. "So, that's a full market correction now".

Stocks began to fall in early trading and their losses grew throughout the day. Switch was down 14 cents, or 0.90 percent to $14.83.

U.S. WTI crude oil fell for the fifth straight day, -1% at $61.15/bbl.

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