U.S. equity markets mounted a strong recovery following the news that the unemployment rate dropped unexpectedly. Although the number of jobs loss was greater than forecast, the improvement in the jobless rate helped confirm that the economy is on the road to recovery. Fear over sovereign debt issues in the Euro Region most likely limited gains.

Thursday saw shares fall once again led by banks and commodity stocks, added to this was concern over Greece's economic health. The US durable goods data also was weaker than expected, disappointing investor confidence in equities.

U.S. markets calmed Monday on good earnings news but Asian markets remained roiled overnight, down about 2 percent across the region. The Yen rose, reflecting a flight to safety as reports continued to circulate that China was tightening bank credit to pump the economic brakes.

President Obama’s new regulatory proposal to curb trading by financial institutions and the fear that the economy may slow down led to a massive sell-off in equities on Wall Street. Support failed in the stock indices early in the session after fresh money failed to show up. This broke the pattern of the last two days and set the tone for a sizeable retracement break.