This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Dow Falls 225 Points on Eurozone Concerns

Stocks in this article: UBS MRK SIRI

NEW YORK ( TheStreet) -- Traders, wracked with fear that Greece's sovereign debt woes could spread to neighboring nations, sent stocks tumbling hard Tuesday, pushing the dollar to new highs against the euro and sending blue-chip stocks plunging over 200 points.

The Dow Jones Industrial Average saw 225 points, or 2%, evaporate during one of its most downbeat sessions of the year, ultimately finishing at 10,927. The S&P 500 lost 29 points, or 2.4%, to 1174, and the Nasdaq declined by nearly 75 points, or 3%, to finish at 2424.

"The strong dollar is biting into risk appetite with the euro plunging this morning on contagion fears about sovereign debt problems in Europe," said Peter Cardillo, chief market economist at Avalon Partners. "We had some good economic numbers out today, which is basically helping the market to stabilize at the low end of the range.

"There's a lot of volatility, and I suspect that this is going to continue as long as we have this fear factor of the sovereign debt worsening," Cardillo said. "The good news is that the market seems to be trading in a volatile range, but it's not breaking down, so it's a good indication that we're probably headed higher before we're headed lower."

Global markets were roiling with doubt that Greece's rescue package would be enough to ease contagion fears, and the euro slumped to new lows against the dollar .

The Chicago Board Options Exchange Volatility Index, thought of as a barometer of fear in the market, also reentered the commentary today, jumping over 24% at one point.

"We're coming off of the 15 level, which is the lowest we've been in a long time. What happened in the last week is the ranges of where it's been have broadened out dramatically," said Marc Pado, U.S. market strategist at Cantor Fitzgerald, noting the VIX is confirming his theory of dwindling conviction and a correction heading into a seasonal summer slowdown.

"This is the beginning of a more substantial correction down the road. This is wave one," he added, saying he expects the S&P to pull back to 1150 in the near term, or around January's peak level. "But we still expect a wave two during the late summer or early fall."

Overseas, Hong Kong's Hang Seng lost 0.2% while Japan's Nikkei was closed for a holiday. The FTSE in London gave up 2.6%, and the DAX in Frankfurt also shed 2.6%.

Late Monday, agents of the Federal Bureau of Investigation and detectives of the New York City Police Department arrested Faisal Shahzad in relation to the failed car bomb found in New York City's Times Square on May 1. Shahzad had been trying to get on a flight to Dubai when he was taken into custody.

1 of 5

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs