U.S. Markets Fall As Oil Soars On Monday

New York, NY (AHN) - U.S. markets pulled back on Monday as investors wait to see details of the government's plan to buy $700 billion in mortgage debt. Crude oil also weighed on the markets, soaring 15 percent on the day.

The plan would give the U.S. Treasury authority to purchase up to $700 billion in distressed assets from banks and brokers. However, there are some disagreements on items such as, the Treasury getting an equity stake in the banks that sell the debt. Such items could delay the approval of the plan by Congress.

Crude oil surged on Monday, gaining 15 percent or $16.37 a barrel to settle at $120.92. The move marked the best one day gain ever for the commodity.

The Dow Jones Industrial average fell 372 points or 3.27 percent. 27 of 30 Dow components finished Monday lower. American International Group (AIG) continues to rally since the government announced it would supply liquidity to the insurance company; shares rose 22.6 percent on heavy volume.

The S&P 500 dropped 48 points or 3.82 percent. All 10 major economic sectors finished the session lower. Financials fell the most, down 8.5 percent, followed by the consumer discretionary sector, down 5 percent.

Tech was also weak with the Nasdaq Composite shedding 95 points or 4.1 percent. Big-cap tech weighed on the index as the Nasdaq 100 fell 4.5 percent on the day. Apple was one of the biggest tech laggards, off 7 percent on Monday after Morgan Stanley cut its price target on the stock.

In other corporate news, Goldman Sachs and Morgan Stanley applied to become bank holding companies. The Federal Reserve quickly approved the change. The move now puts the two investment banks under stricter regulatory guidelines but gives them regular access to the Fed's discount window.

Microsoft announced a $40 billion stock buyback plan on Monday. Shares of the software company rose nearly 1 percent on the news.