Stocks and Dollar Hammered, Gold and Oil Jump

Stocks were pressured today as investors absorbed the U.S. government's financial bailout plan, which could cost taxpayers $100s of billions more than originally anticipated. The U.S. dollar was especially weak today, pushing oil and gold higher. Crude had its largest ever intraday move, closing up 16%, and gold jumped another 5%.

The Dow fell 372 points today, the Nasdaq sank 95 and the S&P 500 lost 48.

The weakness in the dollar today could be attributed to concerns that the U.S. bailout plan could inflate the budget deficit. The dollar, which has seen a recovery lately, fell the most against the euro since 2001.

The landscape on Wall Street continued to evolve, with the two remaining investment banks, Goldman Sachs (NYSE: GS) and Morgan Stanley (NYSE: MS), being forced by market pressures to become bank holding companies. The move allows the two prior investment banking powerhouses to tap the security of a deposit base, but will likely crimp earnings power.

Despite the short selling ban, financial stocks were lower across the board today. The main financial ETF, Financial Select Sector SPDR (AMEX: XLF), sank 8%. Wachovia (NYSE: WB) and Washington Mutual Inc. (NYSE: WM), finished down 12% and 22% respectively, as merger hopes faded.

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