Stocks tumble after government bailout of AIG, Dow down 449

NEW YORK (AP) -- Wall Street has plunged again as investors grow increasingly fearful about more turmoil in the financial system even after the government's bailout of insurer American International Group Inc.

According to preliminary figures, the Dow fell 449 points to 10,609.

The S&P 500 dropped 57 points to 1,156.

And the Nasdaq composite fell 109 points to 2,098.

The market's losses are nearly on pace with those seen in Monday's nosedive and investors are seeking the safety of hard assets and government debt. Gold, oil and short-term Treasurys are soaring.

The Federal Reserve is giving a two-year, $85 billion loan to AIG in exchange for a nearly 80 percent stake in the company after it lost billions in the risky business of insuring against bond defaults. But the move has failed to reassure investors.

(Copyright 2008 by The Associated Press. All Rights Reserved.)


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