US stocks tumbled as concern about Lehman Brothers Holdings Inc.’s ability to raise capital rattled the banking industry and a drop in oil pushed energy companies down by the most in six years.

The Standard & Poor’s 500 Index slumped 3.4 percent, its biggest drop since February 2007, a day after the government’s bailout of Fannie Mae and Freddie Mac sparked the best rally in a month. Lehman led financial shares to their steepest drop since July after talks to sell a stake to Korea Development Bank broke down. Massey Energy Co. and Valero Energy Corp. led the S&P 500 Energy Index to a 6.4 percent tumble.

The S&P 500 decreased 43.28 points to 1,224.51. The Dow Jones Industrial Average lost 280.01 to 11,230.73. The Nasdaq Composite Index sank 59.95, or 2.6 percent, to 2,209.81.

(Bloomberg.com)