U.S. stocks ended their worst week since 2011, rattled by concerns over a scary selloff of Chinese stocks.But U.S. stocks sold off more, with the Dow down nearly 170 points.
The Chinese selloff triggered fears about the health of the world's second biggest economy.
Chinese stocks rebounded a day after trading was suspended, following a 7 percent plunge that kicked off a global rout in stocks. But a good deal of damage had already been done to the U.S. market in the new year.
"This is a weird start to 2016," Yahoo Finance reporter Rick Newman remarked.
Indeed, this has been the worst start for the Dow ever in a New Year.
Another plunge in China Thursday started another global stock slide that sent the Dow tumbling almost 400 points. The plunge in Chinese stocks was set off by concern Beijing is allowing its yuan to weaken too fast against the dollar.
But on Friday, The Shanghai Composite Index ended 2 percent higher after swinging between gains and losses. Analysts said the market was likely being supported by buying from Chinese government entities.
Average Americans with investments and retirement funds are understandably concerned. But experts say don't sell or change your 401k in a panic.
"If you end up selling when the markets are down, you're setting yourself up for losses potentially," Rick Newman, Yahoo Finance.
Selloffs like the one this week may present an opportunity to purchase stocks at a discount.
"If there are stocks out there that you have been following over time - that in your in opinion have been too expensive for you to purchase - this might be the time to step in," Jonathan Corpina, senior managing partner at Meridian Equity Partners, advised.
Or, this could be only a pause in a very bad month.
Analysts warn that anyone with money connected to this market needs to be very careful, and that a series of aftershocks from last year's boom and bust could shake markets for months to come.
Even so, many investing experts still believe stocks will go higher in the years ahead.
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