NEW YORK - May 6, 2010 - Stocks plunged around the world Tuesday as fears spread that Europe's attempt to contain Greece's debt crisis would fail. The dollar spiked against the embattled euro, sending prices for oil and other commodities sharply lower.

The Dow Jones industrial average fell about 240 points, erasing its 143-point gain from Monday. The Dow and broader indexes each fell more than 2%. Treasury prices rose on increased demand for safety investments.

Stocks have seesawed in the past week as Europe's efforts to agree on a bailout package for Greece proceeded in fits and starts. An agreement finally came together over the weekend, but its ballooning size of $144 billion has investors worried that Europe would have an even tougher time assembling an aid package if a larger country such as Spain or Portugal were to get in trouble.

Meanwhile protests erupted throughout Greece against the spending cuts the country has promised to make in order to receive the bailout loans. A general strike has been called for Wednesday. Greece agreed on Sunday to slash public spending by $40 billion to secure the loans.

While Greece's economy is relatively small, investors worry that other cash-strapped European governments could follow Greece into asking for emergency loans. Markets have been increasingly skeptical that Europe can act on its own to restore the credibility of its shared currency, the euro.

"Everybody is worried about who is going to be next," said Scott Fullman, director of derivatives investment strategy for WJB Capital Group in New York.