US stocks slumped on Monday, with the Dow Jones Industrial Average and S&P 500 index falling to new 12-year lows after insurance major AIG reported a massive quarterly loss, heightening worries about the financial sector and the economy.
The Dow tumbled 299.64 points, or 4.2%, to 6,763.29, its first close below 7,000 since May 1, 1997. The S&P 500 plunged 34.27 points, or 4.7%, to 700.82, while the Nasdaq Composite Index dived 54.99 points, or 4%, to 1,322.85.
