“The question is whether the market bounces off a 5 percent or a 10 percent drop,” he said. “I think we’re going to bounce around here for a while.”

Related: Why It’s Time to Consider Global Real Estate Stocks

Treasury Yields Pull Back

As U.S. equities plunged, the benchmark 10-year Treasury note and 30-year note pulled back from their upward trajectory. The 10-year yield ticked lower to 3.14 at the market close, while the 30-year fell to 3.311.

Shorter duration bond yields also fell with the three-month note ticking lower to 2.266, the two-year to 2.848 and the five-year to 2.998.

“Yields have pulled back and you have softer inflation data. This puts a question on the number of Fed rate hikes in 2019,” said Minh Trang, senior FX trader at Silicon Valley Bank in Santa Clara, California.

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