Stocks Plunge As US House Rejects Rescue Plan 228-205

Markets plunged Monday as the US House of Representatives rejected, by a vote of 228 to 205, the $700 billion measure to authorize the biggest government intervention in the markets since the Great Depression.

The Dow Jones index lost 770 points - 6.9% - its biggest one-day point drop yet as Congress surprised observers by not backing the rescue plan.

Meanwhile the Nasdaq index fell 9.1% and London's FTSE 100 index lost 5.3%.

Confidence had already been smashed by the rescue of US bank Wachovia and Bradford and Bingley's nationalisation.

The Dow Jones closed at 10,365.4 points after the bail-out result threw efforts to calm the US financial crisis into disarray. The tech-heavy Nasdaq ended down 200 points at 1,983.7.