Australian stock market in for another volatile week

Traders are preparing for another week of volatility when the Australian sharemarket resumes with investors adjusting their portfolios in the wake of official corrections in the US.

A late rally in the US on Friday saw the Dow Jones finish 330 points higher - almost 1.4 per cent - but experts suggest the mining and energy sectors could be a drag on the local market on Monday's open.

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Oil, gold, iron ore and a number of other base metals are all lower.

The expectation on the futures market is for a decline of up to 0.5 per cent but CommSec chief economist Craig James says given the US rally that could be slightly pessimistic.

"We may be a little bit softer at the start of trade on the back of the resources but overall I think it's going to be a choppy session," he told AAP on Sunday.

"The volatility is still going to be with us for most of the week."

The benchmark S&P/ASX200 index ended Friday down 0.9 per cent at 5,838.0 points leaving it down 4.6 per cent for the week.

In the US, even with Friday's gains, the benchmark S&P 500 fell 5.2 per cent for the week, its biggest weekly percentage drop since January 2016.

The S&P 500 and the Dow industrials late last week confirmed they were in correction territory with both falling more than 10 per cent from January 26 record highs.

Mr James says investors in Australia won't get too carried away on Monday week given labour force figures are out on Thursday and RBA governor Philip Lowe gives testimony to a lower house committee on Friday.

It's also the major fortnight for earnings results.

In the US there's concern the economy is doing too well which could lead to higher inflation and hence higher interest rates.

But Mr James says consumer and producer prices data out in the US this week will give a real measure of inflation and if the readings are weak many investors might decide "they are jumping at shadows".