NEW YORK — Nervous investors reacting to the news of the rejected financial system rescue plan sent stocks tumbling this afternoon.

The Dow Jones Industrials plunged 700 points, recovered slightly not too long ago but dropped again by 700 points shortly before 3:30 p.m. EDT, according to the New York Times. Standard & Poor's 500-stock index was down by 8% as Treasury yields took a dive following the defeat of a $700 billion bill aimed at pulling the nation's financial system out of an unprecedented downturn.

The bill's defeat was felt around the world, the Times reported. Europeans stocks started to fall sharply immediately before the legislation was voted down. The publication also reported that stocks in London and Paris were down by more than 5%. The Hong Kong index dropped 4.3% overnight and Tokyo's Nikkei 225 experienced a 1.2% loss.