WREX.com – Rockford’s News LeaderStocks Tumble on Bailout Bill Rejection

Stocks Tumble on Bailout Bill Rejection

WASHINGTON (AP) -- The House on Monday defeated a $700 billion emergency rescue package, ignoring urgent pleas from President Bush and bipartisan congressional leaders to quickly bail out the staggering financial industry.

A White House spokesman says President Bush is very disappointed by the vote. "There's no question that the country is facing a difficult crisis that needs to be addressed," said spokesman Tony Fratto. He said the president will be meeting with members of his team later in the day "to determine next steps."

Stocks suffered dramatic losses as the House defeated the massive financial rescue package. Based on preliminary data, it was the single-largest point drop in history, but far from the largest on a percentage basis.

While down sharply at midday, the key averages dropped quickly as investors reacted to the legislation's demise.

While the final numbers were still shaking out, the Dow lost 770 points or 6.9% to 10,372.

The S&P 500 dropped 104 points or more than 8% to 1,109.

The Nasdaq composite was down about 200 points or 9% to 1,983.

Declining issues topped advancers by a 15 to 1 margin.

Preliminary volume on the NYSE topped 6.7 billion shares. Volume on the Nasdaq came to 2.8 billion shares.

Light, sweet crude for November delivery sank $10.52 to settle at $96.36 on the New York Mercantile Exchange.

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