U.S. stocks tumble 4% despite financial stability plan

NEW YORK. February 11. KAZINFORM U.S. stocks plunged on Tuesday with all major indexes dropping more than 4 percent as investors were disappointed that the new Financial Stability Plan did not offer more details on buying toxic assets. Dow Jones Index shed more than 380 points.

U.S. Treasury Secretary Tim Geithner announced a comprehensive Financial Stability Plan Tuesday morning unveiling a new bailout package that could top 1.5 trillion U.S. dollars to restore the U.S. ailing financial system. However, Geithner gave no detail on how the new joint entity would price the toxic assets and what the size of the fund would be. Financials suffered a severe sell-off. Bank of America lost 19.3 percent, and Citigroup tumbled 15.19 percent; Kazinform cites Xinhua. The Dow Jones fell 381.99, or 4.62 percent, to 7888.88. Broader indexes also lost ground. The Standard & Poor's 500 index dropped 42.72, or 4.91 percent, to 827.17 and the Nasdaq slid 66.83, or 4.20 percent, to 1524.73.