Stocks fell sharply Monday, declining for a second consecutive session, as concerns about the automobile and bank industries gave investors a reason to retreat after the recent rally. The three major indexes had surged more than 20 percent in less than three weeks on optimism that the U.S. economy is closer to stabilizing. However, stocks opened significantly lower Monday morning and were flat for the whole session. Declines were led by automotive and bank stocks. The Obama administration rejected the restructuring plans of General Motors (GM) and Chrysler on Monday, saying a huge overhaul is necessary for the companies to become viable and receive more taxpayer money. GM was given 60 days to devise a better restructuring plan, and Chrysler was given 30 days to complete a deal with Fiat in order for the government to lend the company another $6 billion. Under the orders, GM chief executive Rick Wagoner resigned at the request of the White House. Meanwhile, U.S. Treasury Secretary Timothy Geithner said the government has about $135 billion remaining to rescue banks. He did not say whether he would ask Congress for more money. Light sweet crude oil for May delivery fell $3.97 to $48.41 a barrel on the New York Mercantile Exchange. The U.S. dollar gained versus the euro and fell versus the yen. The Dow Jones industrial average fell 254.16, or 3.3 percent, to 7,522.02. It was the index's biggest one-day point loss since March 5. Shares of GM plunged 25 percent, and bank stocks including Citigroup and J.P. Morgan Chase also fell. The broader Standard & Poor's 500 index fell 28.41, or 3.5 percent, to 787.53. The technology-heavy Nasdaq composite index fell 43.40, or 2.8 percent, to 1,501.80. The New York Stock Exchange composite index fell 197.59 to 4,899.05. The American Stock Exchange composite index fell 17.08 to 1,332.47. And the Russell 2000 index fell 13.03 to 415.97.
