May 6th, 2010
07:51 PM ET

Dow Jones recovers ground after free fall

At one point the Dow Jones Industrial average had lost nearly 1,000 points.

[Updated at 7:51 p.m] From CNNMoney's Alexandra Twin: There are a few factors that could help stabilize the market Friday, said Peter Cardillo, chief market economist at Avalon Partners, including news on Greece.

"The key is to get Germany's vote tomorrow in favor of the Greek aid package from the European Union," he said. "If that happens, that could help calm fears and stabilize the market."

Friday's big April jobs report could end up being a non-event, said Donald Selkin, chief market strategist at National Securities. "We've had good economic reports all week and it hasn't happened."

Read the full story on the volatile day

[Updated at 7:38 p.m] A round-up of some other business and economic news: 

- Dollar soars as stocks hit free fall: The dollar skyrocketed to a 14-month high versus the euro Thursday after the blue-chip Dow stock index sank almost 1,000 points before rebounding.

- Treasurys soar on "panic buying spree:" The price to buy U.S. debt spiked quickly Thursday afternoon, as investors funneled money into lower-risk securities when the the stock market plunged nearly 1,000 points on fears about the European debt crisis.

- Oil prices plummet, following U.S. stocks: Oil prices fell sharply Thursday, a day after sinking to their lowest levels in over six weeks, as the U.S. dollar continued to strengthen and stocks plummeted, amid the fallout from Greece's debt crisis.  

[Updated at 4:00 p.m.] Faulty Procter & Gamble stock quotes were major factors in the markets' huge afternoon drop, Nasdaq said in a statement. 

"P&G stock trades on multiple exchanges on our primary exchange NYSE, today’s low trade was 56.00.," Proctor and Gamble Financial Communications Manager Jennifer Chelune said in a statement. "Any trade reported below that would have been on the Nasdaq and were looking into whether those were errors." 

[Updated at 3:04 p.m.] The Dow Jones industrial average recovered ground after plummeting 997 points in volatile trading. 

The Dow quickly dropped from down 450 points to nearly 1,000 points in only a matter of minutes. 

By 3:05 p.m the average took a sharp turn upwards and recovered at a similar pace and was just below 400 points. 

[Updated at 2:55 p.m.] The Dow Jones industrial average lost as much as 997 points in volatile trading. At 2:50 p.m it was down 600 points, or 5%. The S&P 500 index slipped 63 points, or 5.4%. The Nasdaq composite dropped 127 points, or 5.3%. 

"It's a knee-jerk reaction to the continued problems in Europe, Greece in particular, possibly Portugal, Spain, the U.K.," said Ted Weisberg, NYSE Floor trader, Seaport Securities. 

[Posted at 2:52 p.m.] The Dow was free-falling Thursday afternoon as investors continued to worry that Europe's debt problems will slow a bigger global economic recovery. 

The Dow Jones industrial average (INDU) lost as much as 570 points in volatile trading. At 2:45 p.m it was down 480 points, or 4.4% lower. The S&P 500 index (SPX) slipped 32 points, or 2.8%. The Nasdaq composite (COMP) dropped 78 points, or 3.3%. 

At one point, over the span of about two minutes, the Dow went from down more than 400 points to down about 900 points. 

Reporters on the trading floor reported that traders and specialists were staring at the board as the numbers continued to drop and are now hustling to figure out what is going on.

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Filed under: Economy
soundoff (13 Responses)
  1. AngryMobVoter

    The fact is to many countries in the World are spending to much and taxing to much and the US is heading in the same direction.

    Congress and this Administration have put the country on a course of reckless government spending that has mortgaged the future of all Americans especially future generations. The only way to fix this long term structural problem is to create a pro-growth atmosphere for business. To do this we must reduce taxes NOW. How many different taxes does a business or individual pay on a regular basis? We must eliminate number and complexity of all these taxes and reduce the tax burden.


    May 6, 2010 at 3:37 pm | Report abuse |
  2. TiredofITAll

    Honestly, get over it. Every single administration spends like crazy these days. It isn't just the current one that we need to "VOTE THEM OUT," it was the previous one that also gave huge massive bailouts using TAX DOLLARS. What we need to do is actually vote representatives in that will actually DO WHAT THEY SAY. I mean, one of the most famous speeches of all time by Bush Sr was the "Read my lips...NO NEW TAXES." Then after in office, he raised taxes.

    I do not care which side they are on, as long as they would just do what they actually say they are going to do. If just want a politician in office that will stick to their actual beliefs/ground and do what they truly feel instead instead of being persuaded by money. Honestly, you want to fix America's problems? Get rid of useless lobbyists that spend millions on millions converting our easily corruptible politicians (all sides of the fence).

    May 6, 2010 at 3:53 pm | Report abuse |
  3. JohnPaulJones

    I always value the comments of those who can not spell or have poor grammar.

    May 6, 2010 at 4:03 pm | Report abuse |
  4. paul

    Bush Sr. didn't raise taxes the Dems that held both houses raised taxes!!!!!

    May 6, 2010 at 4:22 pm | Report abuse |
  5. Chicago

    In this sentence it should be cannot...ironic given your comment 🙂

    May 6, 2010 at 4:25 pm | Report abuse |
  6. TiredofItAll

    Who is JohnPaulJones commenting on? The first one misused the word to (too) and the second one put an extra -instead- in one sentence.

    Also, yes, Bush Sr did raise taxes. He didn't have to "cut backroom deals" to the Democrats. The fact that he did raise taxes, doesn't matter if it was because of pressure from those liberal big spenders, is what most attribute him to failing to come to office a second term. Even the republicans chastised him for it. It is amazing what power the President has, especially with that little thing called "veto."

    It seems that you want to remember history to favor your opinion, instead of how it actually happened.

    Point being is that we need real politicians in office. It doesn't matter if they are liberals, conservatives, middle-of-the-road, extremists, etc, etc, etc. I'm tired of people saying one thing, getting into office, and then doing something completely different.

    If you go on campaign saying you will outlaw this or legalize that...when you get into office do it!

    May 6, 2010 at 5:30 pm | Report abuse |
  7. Mike

    I think the Obama plan, since the economy tanked back during the Presidential election in '08, changed his plan a great deal. The plan became, 1) stabilize the economy, 2) fix the trade deficit / reduce debt / balance budget / resolve two high expense wars / health care. If you attempt to do #2 before #1, millions more people would remain on the dole, making it nigh unto impossible to actually achieve #1. If the economy was still going great guns, I imagine he'd still go after health care since a properly working health care system should reduce the incredibly high overhead we're carrying, but he wouldn't have had to spend all that money on #1.

    I think what's going on with Greece somehow affecting all the markets right now is that someone wants to cause a whole lot of volatility to make some money.

    May 6, 2010 at 8:24 pm | Report abuse |
  8. Arby

    @TiredofItAll : Golly gee, Obama promised health care and that's what he tried to make a reality. Who was it that fought him (and continues to fight) all the way?? Hmm?

    May 6, 2010 at 10:21 pm | Report abuse |
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