Investors signaled strongly on Thursday they're still not ready to return to equities.
The Dow Jones Industrial Average shed 1,033 points, or 4.15%, to snag its second-biggest single day point decline in history. It's biggest single-day decline was also this week, on Monday, Feb. 5. The blue-chip index is now in correction territory, down more than 2,700 points from its high of 26,616 set on Jan. 26.
The S&P 500 fell 3.75% to break below its 100-day moving average and close under the important 2,700-point threshold. The Nasdaq tumbled 3.9%, as well.
Here are three reasons why the stock market continues to nosedive this week.
Volatility up, stocks down is the new trade in town. The Cboe Volatility Index shot higher 23% by the close of trading Thursday. In the past five days, the index, commonly regarded as Wall Street's fear gauge, has skyrocketed 154%.
Bond Yields Surge
Also throwing investors off stocks was the surge in bond yields again Thursday. Bond yields continue to trade near multi-year highs. The U.S. 10-year Treasury note yield rallied close to 2.9% in early trading -- the yield's four-year high is 2.885%. By the closing bell, the note was yielding about 2.83%.
Earnings Not Enough
A number of big-name companies reported earnings beats on Thursday, but it wasn't enough to squash the general markets concerns ripping through Wall Street. Tesla Inc. (TSLA) shares fell despite the company's narrower-than-expected loss. T-Mobile US Inc. (TMUS) shares were also down despite an earnings beat. The same took place for both CVS Health Corp. (CVS) and Twenty-First Century Fox Inc. (FOXA) .
When solid earnings don't send stocks higher, it's often not a good sign of things to come.
Don't give up totally on the market.