Wall Street tumbled with the Dow and S&P 500 falling to a 12 year low after insurance giant American International Group reported the biggest quarterly loss in corporate history.

The Dow Jones industrial average Monday lost almost 300 points, or 4.2 percent to end at 6763.29, its lowest point since April 25, 1997. The S&P 500 index lost 34 points, or 4.7 percent, ending at 700.82, its lowest close since Oct 28, 1996.

The Nasdaq composite lost 55 points, or 4 percent to end at 1322.85. The tech-fuelled Nasdaq has held up better than the other major averages this year and remains above its close of 1316.12 from Nov 20, 2008.