US stocks plunged suddenly but briefly by more than 9 per cent today before pulling back to a near 3 per cent drop, as investor worries mounted that Greece's debt problems could spread.
The Dow and Nasdaq indexes at one point sank heavily after 2 pm, while the S&P 500 and Dow briefly fell into negative territory for the year.
Trading was volatile, though the New York Stock Exchange said there were no system errors during the brief but heavy sell-off.
Investors were disappointed the European Central Bank failed to take fresh measures to help stem Greece's debt crisis. The ECB did not discuss the outright purchase of European sovereign debt, as some had hoped for, but gave verbal support instead to Greece's savings plan. The ECB left interest rates at a record low.
Germany's Bundestag lower house of parliament is due to start debating a draft law on the German contribution to an aid package for Greece tomorrow morning.
The Dow Jones industrial average was down 355.20 points, or 3.27 per cent, at 10,512.92. The Standard & Poor's 500 Index was down 38.87 points, or 3.33 per cent, at 1,127.03. The Nasdaq Composite Index was down 80.93 points, or 3.37 per cent, at 2,321.36.
Volume reached the highest levels since May 2009 during the sell-off.
The CBOE volatility index rocketed up more than 60 per cent at 39.94, its highest level since April 2009.
Reuters