Business Highlights

NEW YORK (AP)--Wall Street caved in to its economic anxieties and closed lower Monday, giving up an early rally over a stimulus package in China and refocusing on the acute pullback in spending that is pummeling U.S. companies.

Market participants realized that while China's $586 billion stimulus is a positive sign that governments around the world are working to fix the global economy, the stimulus itself will likely have only a limited effect in the United States.

The Dow fell 73.27, or 0.82 percent, to 8,870.54, after rising by 215 points in early trading and tumbling by as many as 183.

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Government provides record aid package to AIG

WASHINGTON (AP)--In a record bailout of a private company, the government on Monday provided a new $150 billion financial-rescue package to troubled insurance giant American International Group, including $40 billion for partial ownership.

The action, announced by the Federal Reserve and the Treasury Department, was taken as it became increasingly clear that an original financial lifeline thrown to AIG in September would be insufficient to stabilize the teetering company. All told, the moves boost aid to the company to more than $150 billion. Fed officials, however, expressed confidence that the money would be repaid to taxpayers.

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Circuit City files for bankruptcy protection