babb pisani mightily tries to hy explain w stocks went up todwh most thought he would go down. >> reporter: is the market worried about inflation or not? stocks took a knows dive on february 2nd when the jobs report pointed to strongh. wage grow it fell on today when a read on consumer inflation came in stronger. but by late morning the market recouped all of its losses and move higher. what happened? first volatility has been a big wory recent. today the main measure of volatility, the vix dropped dramatically, indicating that traders who make bets on volatility were betting that volatility would be lower in the next month. that relieved a lot of people. that's one. second, if you look the composition of the ra aly there pattern. first because interest rates are up, bank stocks which wouldb efit from higher rates have tperformed while real estate have been downs thi all makes some sense. while the markets are down this month grohl growth stocks like technologies and industrials outperformed today. at's good newscause the growth story is intact. that ns traders believe the global economy i

babb pisani has more on the day's act. >> reporter: it wa another wild day, the kind of day where the market appears to be changing by the minute. the dow plumtded me than 000 points and ended at session lows. once again in correction territory, down 10%. what is going ri? thenal trigger behind the selloff was friday's jobs report. higher wage growth led to a spike in bond yields. he stock market. that makes some sense. but since then there has been an x factor, this slew of trading strategies, short volatility,ra long stocks that's been unwinding. this selling that we are seeing this week, this massive selling, that's deleveraging, unwinding of those trades. for nowp in of the selling appears to be professional traders. if volatility continues, there will beor outf from retail investigators, those who pouredl $70on into exchange traded funds in january. their likely to get a little for "nightly business report" i'm bob pisani at the new york stock exchange. >>> as we mentioned with latest pullback the dow is now in correction territory. the stocks in the index are some of the most wi

for "nightly i'm babb pisani at the new yor stock exchange. >>> could that report determine the directiont of the mar tomorrow and in days forward. wood, theg us, steven chief market strategy at russel investments. how closely will you be be watching the consumer price index number tomorrow morning as a confirmation of what we saw in theobs report a couple of weeks ago? >> i think very closely. the spark that setme the f a number of trading segs back was an inflation report. and the basic underlying idea is that the economy is doing well. now that we've got stimulus come in not only from the tax cuts but there could be infrastructure spending and there is repatriation of foreign earnings that have been sitting abroad. when we look at the fundamentals in the united states we can subtract off howhe federal reserve will act. what got the market nervouss e federal reserve has been accommodating f a long while. but if they think the inflation and the growth environment is very good they might move quicker and higher. >> there is also tf unknown what the new fed chief is going to do with the boa

you do got lumped in babb pisani. appreciate that. >> guys let's trade this you can come out like black rock and say efts aren't etn or etps, whatever it is a wake up call to investors. be careful. >> everyone should take accountability over what they buy. if something is called an etn, you should find out why it is not an eft i know that sounds obvious there is no such thing as free lunch. it means at some point you are paying for the leverage. you don't hold a lowle vol eft prefr. >> this was a $1.1 billion product. that's not a lot of money on wall street. we look at if it didn't do all the damage it contributed to a lot of of the damage, right? this is one thing that did all of that. it has a 171 page prospectus according to leslie picker and here we are one day later and everything is fine. >> we have all become -- >> nerd. >> ph.d.s in the fine print. >> xivs. >> the real question is is this over, is it ended now with the death of xiv >> that's the only question. >> of course not feet and i will go back and fort

let's go to babb pisani for details. hey bob. >> bondville i like that. bond yields are starting to become a headache for the stock market, brian. the original trigger behind the selloff of course was friday's jobs report. higher wage growth led to a spike in bond yields and that spooked the stock market that makes sense. but bonds became a safe haven play on monday and pushed yields down tuesday and wednesday yields rose again and into today. a prolonged spike in yields may lead, finally to this long awaited selloff in bond funds. we have been waiting for this for five years, but it hasn't happened at least not yet even with the latest market volatility, bond flows for u.s. funds have been positive believe it or not for the first five trading days of february and they are only slightly negative for international funds. none of these numbers you are looking at are statistically significant of it's the stock market that hold the key to bond market flows if the volatility continues in stocks bonds may see big inflows as a safe haven play as for stock funds,