Some U.S. stock indexes cross 10% ‘correction’ threshold

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The 10% stock market ‘correction’ is here, as measured by some major indexes.

The Russell 2,000 small-stock index was down 1.2% to 582.39 at about 11:10 a.m. PST, bringing its loss from its 52-week high on Jan. 19 to 10.3%. If it closes near current levels, the decline from the recent high would be the biggest since the market surge began in March.

Also now off more than 10% from their recent peaks: The New York Stock Exchange composite index (down 10.6%) and the Dow Jones transportation index (11.9%).

The Dow industrials, off 1.3% to 9,871 at about 11:10 a.m., are down 7.9% from their Jan. 19 high.

Stocks had plunged worldwide Thursday as the budget woes of countries including Greece, Spain and Portugal fueled fears of new economic turmoil in Europe.

The selling in Europe was heavy again Friday, with the average blue-chip stock there down 2.1%. Greece’s market sank 3.7% after a 3.3% drop on Thursday. It’s now off 35% from its 2009 high reached in October.

On Wall Street, investors are continuing to flee despite the unexpected drop in the U.S. unemployment rate in January.

This is a broad-based flight away from anything perceived to have risk related to the economy. Commodity prices also are sinking again, with oil down $2.34 to $70.80 a barrel.

The day’s winner, not surprisingly: the Treasury bond market. The yield on the two-year T-note has fallen to 0.73% from 0.79% on Thursday.

-- Tom Petruno