Stocks Fell to Lowest Close in a Year

U.S. stocks closed nearly day’s lows on Monday in a pessimistic start to October and the fourth quarter. The Dow Jones Industrial Average fell 258.08 points, or 2.36%, to 10,655.30, its lowest close since Sept. 2010. The S&P 500 lost 32.19 points, or 2.85%, to 1,099.23, also the lowest close since Sept. 2010. The Nasdaq Composite fell 79.57 points, or 3.29%, to 2,335.83, its lowest close since Sept. 2010.

Many investors and economists have been questioning whether Federal Reserve Chairman Ben Bernanke can still influence the markets with his monetary policy. The market’s recent performance clearly shows he can-but not in the way he intended.

The Supreme Court opened its new term on Monday and considered whether Medicaid recipients and medical providers may sue California for cutting reimbursement rates in the healthcare program for low-income Americans.

Crude-oil futures on Monday ended at their lowest in more than one year. Oil for November delivery dropped $1.59 cents, or 2%, to end at $77.61 a barrel on the New York Mercantile Exchange, down for two straight sessions and at its lowest finish since Sept. 28, 2010.

Shares of American Airlines parent AMR Corp (NYSE:AMR) fell more than 18 percent on Monday as analysts debated the prospects for a bankruptcy filing for the third- largest U.S. airline, which lags its industry peers.