U.S. stocks, including technology stalwarts like Google and Apple, were mashed Monday as dubious lawmakers shot the $700 billion Wall Street rescue plan down in flames in the House.

The Dow Jones Industrial Average dropped a gut-churning 777 points, or 7 percent. The Nasdaq’s plunge accelerated at the close to 199 points, or 9.1 percent, as the average smashed through the 2,000 level to 1,984. It was the Nasdaq's third worst percentage decline in history.

The 205-228 vote against the plan championed by the Bush administration and Treasury Secretary Henry Paulson left open the possibility of a vote on a revised bill in coming days.

At the close, Apple plunged $20.71, or 16.2 percent, to $107.49, while Google crossed the $400 level, losing $35.83, or 8.3 percent, to $395.21. The Morgan Stanley High Technology Index skidded 9.3 percent to 451.2. Among the double-digit percentage losers were: Nvidia, 12.8 percent, Alcatel Lucent, 16 percent, and Salesforce.com, 11 percent.  More pedestrian single-digit losses were recorded by Microsoft, 4.5 percent, Intel, 7.2 percent and Cisco Systems, 7.6 percent.

The bailout bill, designed to shore up shaky U.S. financial companies, was cobbled together in tense weekend negotiations. The legislation would have provided $250 billion to the Treasury, followed by another $100 billion installment. Lawmakers would have the opportunity to turn down the final $350 billion.

The vote against the rescue measure was 228-205 as both Democrats and Republicans heeded the misgivings of angry constituents about legislation seen in some quarters as an undeserved reward for Wall Street’s misguided policies.

European shares fell in lockstep with the United States as the FTSE 100 index lost 5.3 percent. The German DAX lost 4.2 percent and the French CAC 40 slumped 5 percent.

In the United States, oil lost $10 per barrel amid fears of an economic slowdown, and investors seeking a safe haven piled into gold. The SPDR Gold Shares exchange traded fund was up 5 percent to $90.97.