U.S. stocks fell sharply Tuesday on worries that the U.S. government's efforts to slow the recession will not be sufficient, even as President Barack Obama signed the $787 billion economic stimulus bill into law. Obama signed the legislation Tuesday afternoon. He is expected to announce a plan Wednesday to modify home loans, a move seen as critical to reducing foreclosures and helping to reverse the housing-market slowdown. General Motors (GM) and Chrysler are scheduled to present their plans to the government late Tuesday on how they plan to stay viable. The automakers already have received $17.4 billion in government loans, but without proving that they can be viable in the long term, the loans could be recalled and the companies could need to seek bankruptcy protection. Light sweet crude oil for March delivery fell $2.58 to $34.93 a barrel on the New York Mercantile Exchange. The U.S. dollar gained versus the euro and the yen. The Dow Jones industrial average fell 297.96, or 3.8 percent, to 7,552.45, its lowest level since November 20. GM shares fell 13 percent. Other losers included financial components American Express, which fell 11 percent, Bank of America and Citigroup, which each lost 10 percent, and J.P. Morgan Chase, which fell 9 percent. Chevron and Exxon Mobil each lost more than 4 percent on declining crude prices. The broader Standard & Poor's 500 index fell 37.67, or 4.6 percent, to 789.17, its lowest point since November 21. The technology-heavy Nasdaq composite index fell 63.70, or 4.15 percent, to 1,470.66. The New York Stock Exchange composite index fell 267.55 to 4,939.11. The American Stock Exchange composite index fell 36.66 to 1,364.46. And the Russell 2000 index fell 19.46 to 428.90.
