Thursday, May 6, 2010

BREAKING-- Dow Fell 1,000 Points

We have been watching as the Dow Jones Industrial Average collapsed 998 points during afternoon trading on fears of the Greek debt situation. It also came as Proctor and Gamble lost 50% of its value briefly. The Dow is currently down 260 points or about 2.4%. It was one of the largest single-day drops in the Dow's history.

The euro plunged almost 2% and financial stocks sold off on fears that Greece's debt crisis will spread to other high-debt European nations like Portugal and Spain. Underscoring the volatility on Wall Street, the VIX, or so-called fear gauge, soared 50% to fresh 52-week highs. 
“This is a currency crisis that has the potential to blow up into a global financial crisis,” said Peter Kenny, managing director at Knight Capital Partners. “The only thing that’s going to turn this thing around is action.”
Wall Street bounced off its lows, regaining more than 500 points, as the markets recovered from severely oversold conditions.

In good news, it appears that the Dow may rebound in triple digits tomorrow.

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