NEW YORK, May 6 (UPI) — U.S. markets pulled up from a near free-fall Thursday with the Dow Jones industrial average closing off 3.2 percent, up from a descent of 9 percent.
Losses escalated and turned into a sudden plunge in mid-afternoon, with investors in flight on worries that Greece could default on its debt and the crisis would spread.
Greece’s parliament approved a $38 billion austerity package Thursday, but demonstrations in the streets that led to a sobering three deaths Wednesday and negotiations that revealed great reluctance among European nations to pitch in — and among Greeks to accept help — have boiled into a stew of distrust.
The DJIA imploded, losing more than 1,000 points before regaining some traction and climbing over 400 points. At close, the DJIA was down 3.2 percent, off 347.80 points to 10,520.32.
The selloff, had markets closed earlier, would have marked the single biggest percentage loss in history. The DJIA fell 9.2 percent or 998 points, before recovering. The largest loss in a singled day was 6.98 percent, a 777-point drop on Sept. 29, 2008.
As it was, The Wall Street Journal said more than 8 billion shares traded hands with an hour of trading left to go. In contrast, the New York Stock Exchange listed 6.8 billion shares were traded by the close of markets.
Losses were not contained in the United States or Europe. The Shanghai composite index in China fell 4.11 percent. In Japan, the Nikkei 225 index took a sock in the jaw after a return to action from a national holiday. Catching up with global shifts, the Japanese index fell 3.27 percent, 361.71 points, to 10,695.69.
Markets fell more than 4 percent in Italy, more than 3 percent in Brazil and more than 2 percent in Australia, France and Sweden.
Selling also took a slice out of markets Tuesday, escalating despite a $143 billion loan package pledged to help Greece stem its financial bleeding, but also amid reports that the Greek economy is too weak to reduce its debt this year.
On Wall Street, Standard & Poor’s 500 index closed down 3.4 percent, 37.75, to 1,128.15. The Nasdaq composite index lost 82.65, 3.44 percent, to 2,319.64.
The 10-year Treasury note rose 1 7/32 to yield 3.405 percent.
After reaching a 12-month low against the dollar Wednesday, the euro fell to $1.262 Thursday. Against the yen, the dollar fell to 90.25 yen from Wednesday’s 93.76 yen.
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