US stocks slid today after Wachovia Corp became the latest major US bank to succumb to the global credit crisis, increasing fears about the banking sector's stability as lawmakers geared up to vote on a $700 billion financial bailout plan.
The Nasdaq fell more than 4 per cent, led by Apple Inc. The stock of the iPod and iPhone maker tumbled as much as 17.5 per cent on concerns the company will suffer as the economy slows.
The Dow Jones industrial average fell 252.81 points, or 2.27 per cent, to 10,892.32, while the Standard & Poor's 500 Index slid 44.59 points, or 3.68 per cent, to 1,168.42.
The Nasdaq Composite Index was down 99.03 points, or 4.54 per cent, at 2,084.31.
Shares of Bank of America Corp led financials down in the S&P 500, with a drop of nearly 6 per cent, while American Express was a drag on the Dow, with a slide of more than 6 per cent. The S&P financial index fell 5.2 per cent.
Britain's top share index plummeted to a three-year closing low, part of a global equities slide triggered by tottering banks and ahead of a vote by US lawmakers on a $700 billion rescue plan.
The FTSE 100 closed at 4,818.8 points, down 269.7 or 5.30 per cent.
European shares slumped to a three-and-a-half year closing low, with banks weighing heavily, as the fallout from the credit crisis escalated on both sides of the Atlantic.
Financials were battered by news of the part nationalisation of two major European banks, and the sale of Wachovia Corp's bank operations to Citigroup, in addition to ongoing liquidity concerns.
Fears were not offset by optimism that a US rescue plan could solve the financial sector's problems, as US lawmakers met to vote on the $700 billion bailout proposal.
The FTSEurofirst 300 index of top European shares closed down 5.23 per cent at 1,047.04 points - its lowest closing level since January 2005.
In Frankfurt, the DAX index ended at 5,807.08 points, down 256.42 or 4.23 per cent, while in Paris the CAC-40 index closed at 3,953.48 points, down 209.9 or 5.04 per cent.
Japan's Nikkei average fell 1.3 per cent, down for a third day as investor caution about the implementing of theUS bailout plan for the financial sector outweighed initial relief that a deal was being done. The Nikkei ended down 149.55 points at 11,743.61.