Brace for impact

6 May 2010 By Agnes Crane

U.S. stocks plunged 9 pct on Thursday before cooler heads prevailed. The obvious source for this echo of 2008 volatility is concern over fallout from Greece’s woes, despite a 110 billion euro rescue package. Rational or not, it shows financial markets are nowhere near home free.

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U.S. stocks posted their largest percentage drop since April 2009 on May 6, with all three major indexes ending down more than 3 percent. The Dow Jones Industrial Average had fallen below 10,000 in a frantic period of selling before recovering to end the day at 10,520.

Investors rushed into saferhaven U.S. Treasuries, pushing the benchmark 10year bond yield down 0.16 percentage points to 3.39 percent. The euro, meanwhile, fell as low as $1.2520 before rebounding to $1.2612 in late trade.

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