Takeaways From Monday's Stock Market Sell-Off

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The Dow recorded 1,000-point drops on Monday and Thursday.

The broad-based S&P 500 advanced 46.20 points (1.74 per cent) to end at 2,695.14, while the tech-rich Nasdaq Composite Index jumped 148.36 points (2.13 per cent) to 7,115.88.

US stocks pulled back on Wednesday after heavy selling lifted the 10-year Treasury yield back to 2.85%, matching a four-year high.

U.S. stocks finished lower on Wednesday after early gains, with investors remaining cautious after the recent market slide and hedging their bets.

The massive drop is regarded as a correction for the bull market - the first in two years, an unusually long time.

For the stock market to halt on Thursday, to allow fearful investors a chance to cool off, the S&P would have to drop to around 2,494, according to this notice from Nasdaq that is updated daily.

The losses, which began last Friday, put the benchmark Standard & Poor's 500 index nearly 8 percent below the record high it set two weeks ago.

Among the biggest fallers on Tuesday was Tokyo's Nikkei 225 stock average, which ended 4.7 per cent lower at 21,610.24, having earlier been down a massive 7 per cent.

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What is now being described as a "bloodbath", sudden turmoil gripped global markets triggered by the biggest ever one-day points fall in America's Dow Jones. Australia's benchmark S&P ASX 200 slid 3.2 per cent to 5,833.30 and South Korea's Kospi declined 1.5 per cent to 2,453.31. The yield on the 10-year note was as low as 2.04 percent as recently as September.

Bond yields, which move inversely to bond prices, rose to multi-year highs across the globe. Average hourly wages grew 2.9 percent from a year ago - the largest increase since 2009.

Hopes that Wall Street won't repeat the scale of Monday's losses helped limit the selling during European trading hours.

At the heart of the pullback is a rise in USA bond yields due to growing expectations that a robustly performing economy will lead to higher inflation and a steady rise in official interest rates over this year.

FedExFDX.N and UPS UPS.N dropped more than 1 percent after the Wall Street Journal reported Amazon.com IncAMZN.O will be launching its own delivery service.

Benchmark U.S. crude oil lost 64 cents, or 1 percent, to $61.15 a barrel in NY.

The Standard & Poor's 500 index was up 12 points, or 0.5 percent, at 2,662. It's down 181.13 points, or 6.6 per cent, for the week.

"Investors are fearful that inflation. will rise faster than expected due to the impact of a weak dollar on import prices and rising wages, and that as a result interest rates may also rise faster than expected", wrote Colin Moore, global chief investment officer at Columbia Threadneedle Investments.

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