Goldman fell 8.5 percent after Barclays PLC said the stock- market rout may drag the firm to its first quarterly loss since going public. General Motors Corp., which last week said it may run out of cash, lost almost a quarter of its value after Deutsche Bank AG said the automaker's shares may go to zero. Google Inc., the biggest seller of online ads, sank 3.7 percent on concern fourth-quarter revenue growth will stall.
The Standard & Poor's 500 Index retreated 1.3 percent to 919.21, extending last week's 3.9 percent slide. The Dow Jones Industrial Average lost 73.27 points, or 0.8 percent, to 8,870.54. The Nasdaq Composite Index slipped 1.9 percent to 1,616.74. Almost three stocks declined for each that advanced on the New York Stock Exchange.
Canadian stocks rose a second day, led by resource producers, as commodities gained on speculation a $586 billion Chinese stimulus package will spur demand. The Standard & Poor's/TSX Composite Index added 0.9 percent to 9,678.73 at 3:52 p.m. in Toronto after climbing as much as 3.5 percent earlier when oil rose more than $5 a barrel.
Stocks rose in Europe and Asia after China unveiled a $586 billion plan to stimulate the economy and world leaders urged more cuts in interest rates.
National benchmarks gained in all 18 western European markets except Austria and Spain. The U.K.'s FTSE 100 jumped 0.9 percent with Cable & Wireless Plc advancing. Germany's DAX added 1.8 percent, while France's CAC 40 increased 1.1 percent.
China's CSI 300 Index jumped 7.4 percent, and Japan's Nikkei 225 Stock Average surged 5.8 percent. BHP Billiton Ltd.ArcelorMittal and ABB Ltd. added more than 13 percent in Europe.
Emerging-market stocks, bonds and currencies gained. The MSCI Emerging Markets Index added 3.4 percent, with Russia's Micex Index climbing 7.1 percent and India's Sensitive Index adding 5.7 percent.