The Dow extended its rebound to a second day Monday, rallying more than 400 points as investors shook off recent volatility and bought stocks at cheaper prices after the stock market's worst weekly drop in two years.

After briefly dipping more than 10% from its late-January high and falling into “correction” territory last Thursday, the Dow Jones industrial average is mounting a comeback. It has posted its best two-day point gain –  741 points --  since August 2015. Still, it remains down more than 7.6% from its all-time high.

Traders Peter Tuchman, left, and Patrick Casey work on the floor of the New York Stock Exchange, Thursday, Feb. 8, 2018. U.S. stocks are lower Thursday morning as losses from the previous day continue.
Richard Drew, AP

Wall Street is still trying to make sense of a violent return of market volatility that ended a long period of market calm.

The Dow’s 410-point, 1.7%, rally to 24,601.27 on Monday coincided with a debate on Wall Street as to whether the worst of the selling is over. And if a low — or so-called "market bottom' — has been reached after two weeks of turbulent trading.

Monday's follow-through rally — which saw 29 of the 30 Dow stocks move higher — provided further hope that the worst of the early-2018 slide is in the past, says Jeff Schulze, investment strategist at Clear Bridge Investments, a New York-based asset management firm.

“The market rebound gives me more confidence that it may well be the bottom,” Schulze told USA TODAY.

Other market pros say it is still possible that stocks head lower again. If they do, the key will be if major indexes like the Dow and Standard & Poor's 500 can stay above last week’s lows. If they are able to do that, it could set the stage for a move higher.   

After the market flare-up the past few weeks, Schulze adds, Wall Street is again refocusing on the market’s positives, such as a still-strong U.S. economy, low risk of recession and strong global growth.

Still, he stresses that volatility will continue to be the big story this week as the market works through its recent challenges.

It took just nine days for stocks to plunge 10% from their latest peak set January 26. That's known on Wall Street as a market "correction." According to LPL Financial, that's the swiftest move from a record high to a correction for the S&P 500, the most widely used market benchmark.

The recent selloff was initially sparked on Feb. 2. That's when fears of rising interest rates emerged after the strongest rise in hourly pay in nearly a decade. And things turned worse last week when traders who had used borrowed money to place trades that profit when the market remains calm, got battered when the wild swings caught them by surprise. The return of volatility forced many of these traders to sell other shares to limit their losses, exacerbating declines in the broader market.

Investors on Friday regained some confidence when an early steep drop for the Dow reversed course and the blue-chip stock average finished up 330 points. Another good sign on Friday was the broad S&P 500 stock index briefly falling below its long-term bullish trend line over the past 200 days, but then holding that level and rallying sharply.

The fact that the average stock in the S&P 500 was down nearly 14% from recent highs, suggested to many on Wall Street that the selling was overdone, paving the way for a rebound.

Despite the two-day recovery, the S&P 500 is down 7.5% from its recent high, and investors expect far more volatility in the stock market than they did two weeks ago.

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Contributing: Associated Press