Finite element simulations are carried out to study transient stresses and strains in the pre-cracked (pre-notched) 4340 steel plates impacted by a projectile in the direction of the notch ligament. The computations employed Johnson - Cook model which takes into account strain hardening, strain-rate hardening and thermal softening. An approximate solution of the governing equations is sought by using an explicit finite element code DYNA2D. We analyzed the evolution of the shear and hoop stresses considered to be responsible for two modes of failure: opening crack inclined at 70°, and shear crack inclined at -5° to the notch ligament. At small impact speeds and large notch tip radii failure in the 70° direction is due to the high tensile hoop stress. At high impact speeds and small notch tip radii a failure develops predominantly in the (-5°) -- (-15°) direction, within a zone of the maximum shear stress and compressive hoop stress.