Traders are eyeing Tuesday's retail sales data and earnings from JP Morgan Chase and Wells Fargo as possible catalysts after stocks were rocked in volatile trading Monday.
What has been a sour start to the New Year gave way to full-throttled selling on Monday, with the Dow tumbling more than 1 percent to 16,257 and the S&P 500 plummeting 1.3 percent to 1819, its weakest performance since Nov. 7. Even worse were the Nasdaq's 1.5 percent decline and the Russell 2000's 1.4 percent drop.
"It would seem investors are somewhat wary of earnings. Everything I'm seeing still argues for economic acceleration. Whether that's going to translate to earnings growth, it's hard to know," said Jack Ablin, CIO of BMO Private Bank. "Half of earnings growth was attributable to (low) interest rates. Funding rates declined so much in the last couple of years."