After a year-long recovery in the market, stocks have recently taken a turn for the worst. Despite strong corporate earnings in the first quarter and a rebound in consumer spending, investors are now bracing themselves for what could be a major correction, or even a bear market.

So what happened?

The European debt crisis that began as a minor issue in Greece has spread like wildfire to the rest of the European Union. The energy sector has been pummeled as the BP oil spill continues to drag on, taking with it the share prices of almost every company involved with exploration, drilling, or services.

In times like this, it's not odd to see drastic movement in your portfolio, stocks that move by 5%-10% on barely any news at all. So let's see which stocks were the biggest market movers yesterday and examine whether or not there was any logic to justify their shift.

Company

Market Cap (millions)

Change in Price (%)

Closing Price

Furniture Brands International (NYSE: FBN)

$307

(11.81%)

$7.20

OfficeMax (NYSE: OMX)

$1,370

(10.77%)

$18.11

Krispy Kreme Doughnuts (NYSE: KKD)

$266

6.78%

$3.69

Dragged down by job data and continued euro weakness, the Dow dropped by more than 300 points on Friday. Furniture Brands International, despite recently swinging to a first-quarter profit, felt the pain of the market's free-fall. The company was able to reduce overhead costs, which helped it report $3.5 million in quarterly profit; however, sales remain weak at company retail outlets, no doubt a reflection of the timid recovery in discretionary spending.

Although the economy has picked up, the jobless portion of this upturn has hit office retailers like OfficeMax. As long as companies are hesitant to fill up empty offices with new furniture and supplies, the woes should continue. OfficeMax's share price dropped by more than 10% on Friday, just one day after competitor Staples (Nasdaq: SPLS) reported a 32% jump in profit. Tainting the good news for Staples was a cautionary remark about the uncertainty in the economy, as described by the company's CFO John Mahoney.

One silver lining on an otherwise dark Friday could be seen for shareholders of Krispy Kreme Doughnuts, as the popular donut eatery saw profits double from 2009's comparable quarter. In addition, the company is raising its guidance, according to a recent press release: "Based on our results for the first quarter, which exceeded our expectations, and other current information, we are raising that outlook." Apparently, consumers have enough pocket change for a doughnut or two, no matter how dismal the market may be doing!

The Foolish bottom line
In the choppy waters of today's market, you've got to watch your portfolio carefully -- but be sure to distinguish between random volatility and a true change in fundamentals. If your stocks are jumping all over the radar screen, but your investing thesis remains intact, then just sit back and hold on for the ride. If you have any thoughts on the stocks mentioned above, head over to CAPS and let the 165,000-plus investing community know what you think!

Jordan DiPietro doesn't own any shares in the stocks mentioned above. Staples is a Motley Fool Stock Advisor pick. The Fool has a disclosure policy.