NEW YORK (Reuters) - Stocks extended losses on Monday, sending the benchmark S&P 500 and the Nasdaq down more than 2 percent, as investors worried that passage of a proposed $700 billion bailout to resuscitate financial markets might hit a speed bump in Congress.
Another headwind for the market was a resurgence in the price of crude oil, which shot up $4.40 to $109.11 a barrel as the dollar slid.
Shares of financial services companies led the broader market's decline, which also hit other economically sensitive sectors like retailers and home builders. The S&P financial index dropped 6.3 percent.
Members of Congress have called for changes in the plan. But President Bush said in a statement: "Failure to act would have broad consequences far beyond Wall Street." Delay would threaten small businesses and home owners, Bush said.
The Dow Jones industrial average dropped 220.46 points, or 1.94 percent, to 11,167.98. The Standard & Poor's 500 Index shed 27.84 points, or 2.22 percent, to 1,227.24. The Nasdaq Composite Index lost 48.26 points, or 2.12 percent, to 2,225.64.
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