Worse-than-expected Economic Data Thwart Rally

Matt King, chief investment officer of Oakland, California-based Bell Investment Advisors, said the market's dips are an opportunity to increase exposure to stocks.

"We're trying to caution people that just because the market pulls back doesn't mean we're heading back to the bottom," he said.

Still, analysts are keeping a close eye on rising Treasury yields and a weakening dollar. Investors are concerned those factors, largely an outcome of the government's massive stimulus efforts and the improved outlook on the economy, could also hinder a robust recovery.

Rising yields could lead to higher interest rates on mortgages and other types of consumer loans to which they are linked, while a falling dollar could trigger inflation and hamper the buying power of consumers.

On Wednesday, however, both Treasurys and the dollar rebounded.

The yield on the benchmark 10-year Treasury note, which moves opposite its price, slipped to 3.54 percent from 3.62 percent. Last week, the 10-year yield surged to a six-month high of 3.75 percent.