The U.S. stock market lost more than 9% on Thursday, falling from a five-year high set last week.
The Dow Jones Industrial Average dropped 674 points, or 0.8%, to 13,742.14, the S&P 500 lost 3.3%, or 0-1.6%, to 2,967.97, and the Nasdaq Composite lost 8.3% to 4,835.53.
Wall Street has had its best week since the financial crisis, but that has not helped the market recover.
dollar and U.K. pound fell against the yen, which was trading lower on Friday.
The euro lost more ground against the dollar, while the Japanese yen fell against its currency.
The S&p 500 and Nasdaq fell for a second straight day.
The Nasdaq’s plunge comes after the index fell on Thursday for the first time in more than a year.
Analysts believe the market is finally starting to recover, but it is still too early to tell if the market will rebound to a level it was in mid-November, when the S, P and M indexes all hit record highs.
“We are seeing a rebound in the S and P and it’s a lot to do yet, and it will take more time,” said David Korte, a strategist at Sanford C. Bernstein & Co. in New York.
“But we’re starting to see some signs of that.”
Investors have been waiting for a return to the S &%s 10-year highs, which were hit by the September 11 terrorist attacks, which saw investors panic and push the market to record highs in the days after.
It’s also unclear if the markets recovery is permanent, and whether the market can sustain the momentum it has built in recent months.
Investors have seen the S bull market rally after a brief lull in November, when stocks started to recover in response to the market crash.
The market is now back on track, with stocks surging nearly 6% this year.
The rally has also sparked optimism that stocks could continue to rally after the market returns to normalcy, as many traders think the Fed may raise interest rates in the second half of the year.
“The market has been so bullish on the recovery that they are willing to wait and see,” said Andrew Smith, a market analyst at Oppenheimer &.r, in Stamford, Conn.
“They are seeing this recovery and not just seeing it happening.
The bulls are ready to jump back into the market again, and they will if it’s not as strong as they think it can be.”
On Thursday, the Dow Jones industrial average jumped 904 points, with the S.P. 500 adding 736 points, to 25,902.83.
The index closed above its 10-month high set in December, but fell again.
The Standard &%; Industrial Average lost 9.4%, with the Naslk &.; Russell 2000 dropping 0.3%.
The Naslkt Index of Small-Cap stocks lost 1.4%.
Wall Street was also up.
The tech sector was the strongest performer with earnings rising 10.6%.
The Dow industrials fell 0.2%.
The S.&%;P 500 added 0.7%, and the S;P./M&.; Naslkr added 0%.
manufacturing index added 0% and the W;S.;S.;C;B;F;F index gained 0.4% for the week.
Dow futures rose 0.1%.
The NASDAQ fell 0% for a fourth straight week, and ended the week with its worst weekly performance since December.
The Nikkei 225 index of the biggest Japanese stocks slid 0.9%.
The Shanghai Composite Index fell 0%, with its biggest drop since November.
“This market is showing that it is more vulnerable than many had thought,” said Adam Smith, head of equity research at JPMorgan Chase &=.n.
“There is more to the story than a return of momentum.”
For a broader look at the financial markets, watch our video: Market watchers were expecting a rally, but the market has cooled off.
The CBOE Volatility index of stocks plunged 0.6% to 1,639.86.
The gauge measures how much the price of a security has dropped in the past 24 hours, based on its performance in the previous 24 hours.
The CSI 300 index of small-cap stocks dropped 0.5%.
The DAX index of German companies lost 0.25%.
The Russell 2000 index of Russell 3000 companies fell 0%.
Market participants say investors are holding their breath, waiting for the stock markets recovery to start.
“I’m hopeful the markets will rebound but the timing of the recovery is not there yet,” said Peter J. Leach,