Stocks dropped sharply during the first month of the year, with the Dow tumbling more than 5%. That was the Dow's worst January since 2009, when stocks were still in freefall in the aftermath of the financial crisis.
The S&P 500 slipped more than 3% this month, while the Nasdaq has shed nearly 2%.
Stocks have been hit particularly hard during the past two weeks due to emerging market worries and weak earnings.
As stocks continued to lose ground, CNNMoney's Fear & Greed index, which measures seven indicators of market sentiment, fell further into "Extreme Fear" mode.
The market pullback hasn't been a total surprise though, given how well stocks did in 2013. Many experts believe stocks could continue to drop before resuming their upward trend.
"Frankly, we've been telling clients to expect a 5% to 10% decline," said Matt King, chief investment officer at Bell Investment Advisors. "We didn't think it would happen so early in the year, but it's been such a good run for markets that a meaningful correction is normal and healthy."
While stocks took a small step back last spring, they haven't experienced a correction, typically defined as a decline of 10% or more, in more than two years.
But King still thinks stocks will end the year with modest gains.
"We think the declines could spill over into February, but we're telling clients to buy into this weakness as well," said King. "We don't think this is anything more than a normal correction."
On the earnings front Friday, Mattel (Fortune 500), , Amazon (Fortune 500), , Chevron (Fortune 500) and , MasterCard (Fortune 500) were all big losers on Friday after reporting results that underwhelmed investors. ,
Mattel shares tumbled after the toy giant reported a surprise drop in its fourth-quarter revenue, as sales of its core brands Barbie and Fisher-Price fell sharply.
Amazon missed Wall Street's earnings forecasts, sending shares sharply lower. It was the worst performer in CNNMoney's Tech 30 index. Amazon also disclosed that it is considering doubling the membership price of Prime to $40 to cover rising fuel and shipping costs, a topic that generated plenty of chatter among traders on StockTwits.
But others came out in defense of the company.
Wal-Mart (Fortune 500)shares were flat after the discount retailer cut its guidance for the fourth quarter. ,
On the bright side, Google (Fortune 500) and , Chipotle ( were all higher and hit new all-time highs following their earnings reports. )
Facebook (Fortune 500) shares also rose to new all-time highs. Shares of Facebook doubled in 2013 and have , continued to rise this year, as the company continues to succeed with its mobile advertising strategy. Traders are hopeful that the stock will continue to gain ground.
Zynga ( was also higher, but the company also announced )a new round of job cuts.
Emerging markets were in also in the limelight once again, with the Turkish lira and other currencies weakening further.
The volatility has been sparked by the fact that economic growth is slowing across developing economies and fears that China's shadow banking system could spark a credit crunch.
The Federal Reserve's decision to reduce the size of its monthly bond purchase program has also been weighing on emerging markets. The so-called tapering by the Fed is expected to leader to a stronger dollar, which should make emerging markets less attractive for investors.
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