Stocks Slump Again: Dow Suffers Biggest Drop in Four Weeks

The Dow Jones Industrial Average fell by 254 points to close at 7,522.10. The drop is a 3.3% decrease for the market.

Nasdaq sunk 2.8%. The S & P 500 closed after a 3.5% tumble.

Traders put Wall Street's big March rally on hold after the White House rejected turnaround plans from General Motors Corp. and Chrysler. Financial stocks also weighed on the market as investors worried that banks will need fresh infusions of capital.

Analysts say the pullback, which began with a 148-point drop in the Dow Jones industrial average on Friday, wasn't a surprise given a 21 percent surge in the index over just 13 days in March.

Oil prices ended lower on the New York Mercantile Exchange. They fell $3.97 -- closing at $48.41 a barrel.