Finance: Stocks whipsaw after falling into correction

The Dow Jones industrial average and S&P 500 tumbled into correction on Thursday.

• US stocks whipsawed on Friday, opening firmly higher on Friday, but giving back most of the gains not long after.
• The Dow Jones industrial average and S&P 500 tumbled into correction on Thursday, defined as a 10% drop from their most recent highs.
• Track the Dow at Markets Insider.

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US stocks opened firmly higher on Friday, rebounding after falling into a correction.

The Dow Jones industrial average gained as many as 335 points (1.4%). By mid-morning, however, the major indexes rolled over into the red.

At 11:06 a.m. ET, the Dow was up 48 points (0.2%) and the S&P 500 was up 10 points (0.4%).

Both indexes plunged into correction on Thursday, defined as a 10% drop from the most recent highs. To illustrate the speed of this drop, Ryan Detrick, a senior market strategist at LPL Financial, noted that it was the first time the S&P 500 corrected 10% from an all-time high in nine days or less.

The worst of the sell-off began last week Friday, when data on wages showed inflation may be picking up and could prompt the Federal Reserve to combat it with higher interest rates. This week, the market sell-off was amplified by so-called "target volatility funds" that rushed to sell stocks and buy protection against higher volatility.

On Friday, stock markets around the world that opened ahead of the US trading day on Friday were in sell-off mode.

Read more coverage of this week's market meltdown:

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A Fed official called the stock market's plunge 'small potatoes' — but those comments miss the point

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'The selloff is starting to feel more real': Wall Street explains why this massive stock drop is different

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The chief strategist at a $695 billion money manager tells us why 'we're at a watershed point in markets'

One of the biggest narratives behind why the stock market just went haywire is wrong

The infamous 'VIX Elephant' trader just returned to harvest the gains he made when stocks went haywire

Fed President Kashkari gives us his take on the stock market's plunge and the economic data that triggered it

The Dow Jones industrial average and S&P 500 tumbled into correction on Thursday. Read Full Story