Stocks logged their biggest drop of the year Thursday as investors worried about two events coming Friday — a German vote on the EU bailout and options expiration.
Plus, a vote in the Senate to end debate on financial reform cleared the path for a final vote tonight or tomorrow, which added another layer of selling pressure.
The Dow Jones Industrial Average shed 376.36, or 3.6 percent, to close at 10,068.01, finishing at its session lows after the selloff accelerated in the final minutes of trading.
The S&P 500 lost 3.9 percent and the Nasdaq fell 4.1%. The CBOE volatility index, widely considered the best gauge of fear in the market, jumped over 25% and was above 44 at the closing bell, its highest level in over a year.
Several market pros offered optimism earlier today but in the last half hour of trading, economist Nouriel Roubini, aka “Dr. Doom,” said he sees stocks going down another 20 percent and that cash is the safest place to be.