Toronto stocks drop 7 percent as U.S. rejects bailout

The Toronto Stock Exchange's main index tumbled nearly 7 percent on Monday, the biggest drop in eight years, as U.S. lawmakers rejected a proposed $700 billion bailout of the financial services sector, sending investors fleeing for the exits.

As the U.S. House voted to reject the Wall Street rescue plan, concerns mounted that the fallout from the crisis in the United States was spreading rapidly around the globe and that the world economy was headed for a sharp downturn.

The S&P/TSX composite index dropped 840.93 points, or 6.93 percent, to 11,285.07, its biggest percentage drop since October 2000, when markets were roiled by the bursting of the tech bubble. On a points basis, it was the biggest decline ever. continue reading