U.S. stocks hit hard, taking Dow under 10,000

Date: Tue, 25 May 2010 12:00:55 -0400

U.S. STOCKS HIT HARD, TAKING DOW UNDER 10,000
U.S. stocks plummeted Tuesday as rising political tensions on the
Korean peninsula and sharper worries over the European banking system
sparked a broad selloff.

S&P 500 PLUNGES TO TEST MAJOR SUPPORT
After breaking down last week, the U.S. markets are still groping for
a floor. In fact, the Standard & Poor's 500 Index has dropped to
major support at the February low, and its response to this area
should set the near-term market tone.

PIIGS MARKETS ALL IN BEAR TERRITORY
Italian, Portuguese and Irish stock markets joined Spain and Greece in
bear market territory Tuesday, as markets across the Continent
suffered through another heavy wave of selling pressure.

LIBOR JUMP UNDERLINES RISING TENSIONS
The rate banks charge each other for short-term loans in U.S. dollars
hits another 10-month high, underscoring the sense of growing unease
over the possibility that Europe's sovereign-debt crisis could turn
into a banking crisis.

EUROPEAN STOCKS FALL BACK TO NINE-MONTH LOWS
European shares move broadly lower, with banks and miners taking the
brunt of the selling as investors fret over tensions in Korea as well
as problems with debt burdens and bank balance sheets closer to home.