STOCKS COLLAPSE: Dow Suffers Worst One-Day Point Drop Ever -- US Commentary

(RTTNews) - U.S. stocks suffered one of their worst days in recent memory Monday, as markets continued to throw a tantrum over rising interest rates.

Analysts say computer algorhythms were triggered, contributing to the mass sell-off.

The Dow Jones Industrial Average fell 4.6%, or 1,175 points, to 24,346. On a percentage basis, the day represented the biggest one-day drop for the blue-chip average since August 2011. It was the biggest one-day point drop ever.

The S&P 500 fell 4.1%, or 113 points, to 2,649. The Nasdaq Composite Index fell 273 points, or 3.8%, to 6,967.

The Stock-market volatility index (VIX) jumped 85% in its biggest 1-day leap ever.

Today's sell-off overshadowed any corporate headlines. Markets also ignored some upbeat economic news.

Bristol-Myers Squibb Co. (BMY) fell 4% despite reporting positive results for advanced lung-cancer trial results.

Teva Pharmaceutical Industries (TEVA) submitted a new drug application for a generic version of Corcept's hyperglycemia treatment Korlym. Teva shares were lower, and Corcept plunged 22 percent.

The Federal Reserve Board on Friday announced that it would restrict the growth of Wells Fargo & Co. (WFC) until the company sufficiently improves its governance and controls. Shares plunged 10 percent.

Tech giant Apple Inc. (AAPL) is reportedly planning to ditch Qualcomm Inc.'s (QCOM) modem chips in favor for Intel. Shares of Qualcomm fell sharply after the news.

In economic news today, the U.S. ISM services index hit its highest level since mid-2005, a sign of further strength in the nation's economy.

Economic activity in the non-manufacturing sector grew in January for the 96th consecutive month, according to a survey of purchasing managers.

Last week, the Federal Reserve hinted it will increase the benchmark rate at its next meeting, in late March, thanks to an improving economy and signs of inflation.