And for more comparison, when the Dow Jones lost all those points during the 2008 financial crisis, it amounted to nearly an 8 percent drop in a single day. "This is a good time for some investors to have some very good buys come Monday morning or Tuesday morning". The firm manages $179 billion.
While interest rates are still low by historical standards, meaning borrowing is still relatively cheap for businesses and people, they have been rising more swiftly, and that is what has had markets on edge.
Little escaped the selloff.
First-quarter profit growth for S&P 500 companies is now estimated at 17.7%, according to Thomson Reuters data, up from 11.7% on December 20, when both houses of Congress approved the tax revamp.
The Dow dropped almost 666 points, or 2.5 percent, just two weeks after it surpassed the 26,000-mark for the first time. The stock market is on track for its worst week in two years, according to CNBC.
Stock strategists Friday said the stock market would not stop shaking out until bond yields stop rising. "Sentiment got euphoric. There is more froth that needs to be taken off". "And that's been a big reason for selling". All of the index's 10 main groups ended lower.
Volume on USA exchanges was 5.39 billion shares, compared to the 7.33 billion average for the full session over the last 20 trading days.
S&P 500 measures the performance of 500 widely held common stocks of large-cap US companies. The "VIX" has spent months at historically low levels, reflecting a placid market mood that seems to have evaporated over the last week.
However, that does not mean the stock market is completely in the clear.
Analysts said cannabis producers will continue to see more volatility in the weeks ahead on issues such as oversupply in stock and falling prices. There just are too many things that can go wrong.
Exxon took the worst hit, plunging 5.10 percent to $84.53 in NY trading.
For the week, the Dow fell 4%, while the Nasdaq and S&P 500 each slipped by more than 3%.
"The fundamentals are still OK", said Patrick O'Hare, chief market analyst at the investing website Briefing.com.
"I'll bet you a bag of donuts that by Wednesday or Thursday of next week the equity market starts finding its footing against the backdrop of more stable bond yields", Purves said.
"The overall complexion here is that earnings have been pretty robust, economic data is holding together well, inflation is starting to pick up - there's nothing really different in terms of an overall bull trend", he said.