On Monday S&P 500 extended its biggest
decline since September and closed at 1,192.98, 1.86% or 22.67 points down
compared to previous trading. Index was mainly hit by financial firms on growing
anxiety about US inability to cut spending by $1.2 trillion. All 10 industries
in the index experienced shrinkage. Hewlett-Packard Co and Caterpillar
Inc each tumbled about 2.9%. Gilead Sciences Inc plummeted 9% after announcing
plans to acquire drug developer Pharmasset Inc worth $11 bn. Alleghany Corp lost
almost 7% after the insurer reported it had decided to purchase Transatlantic
Holdings Inc is valued at $3.4 bn.