U.S. stocks at the lowest level since 1996

On Monday the U.S. stocks fell to the level lowest over 12 last years according to Reuters reports. The drop in major indexes was provoked by the increasing concerns over the financial industry that doesn’t seem to recover as the government announced another bailout to the AIG that posted a record $61.7 billion loss.

The Dow Jones industrial impacted among other things by the disorder reigning over the world banking system declined to its first close below 7,000 since May 1997. Meantime, selling of financial, energy and industrial stocks led the S&P below 700 during the session for the first time since October 1996.

"The fear is that there is no end in sight for bailouts for the 'too big to fail' banks," said Fred Dickson, market strategist and director of retail research at D.A. Davidson & Co in Lake Oswego, Oregon.

"The step in by the government to basically launch the third round of bailouts for Citigroup and the fourth round of bailouts for AIG has unsettled investors."

Thus, the Dow Jones industrial average dropped 299.64 points, or 4.24 percent, to 6,763.29. The Standard & Poor's 500 Index fell 34.27 points, or 4.66 percent, to 700.82. The Nasdaq Composite Index shed 54.99 points, or 3.99 percent, to 1,322.85. All 30 Dow components ended in the red, while all 10 of the S&P's sectors also were negative.