The energy-heavy Toronto Stock Exchange plunged on Monday after oil prices closed at their lowest level in eight months and investors continued to show nervousness about the U.S. bailout plan that passed last week.

The S&P/TSX composite index dropped 572.92 points, or 5.3%, to close at 10,230.43 on Monday. Earlier in the day, the index had lost as much as 11%, touching 9,617.93.

The plunge was led by a 9.36% drop for the energy group, after crude for November delivery dropped US$6.07, or 6.5%, to close at US$87.81 per barrel on the New York Mercantile Exchange — the lowest price for oil since early February.

Shares of Suncor Energy Inc. lost $4.94, or 13.56%, to close at $31.50, while Canadian Natural Resources Ltd. stock fell 8.7% to close at $58.36.

Lower oil prices pulled down the Canadian dollar a cent and a half Monday, closing at US90.98¢.

The financials group was down 3.72%, dragged down by considerable losses for the Big Five banks. This included a 5.39% drop for Bank of Montreal shares, which finished the day at $40.21. Shares of Bank of Nova Scotia fell 4.58% to $45 despite news that the bank would buy a $2.3-billion stake in CI Financial Income Fund.

Shares of Fairfax Financial Holdings Ltd. defied the trend and rose 5.56% Monday, closing up $18 at $342.

Meanwhile, nervous investors poured more cash into gold. Gold for December surged US$33, or 4%, to US$866.20 an ounce on the Comex division of the New York Mercantile Exchange.

However, this didn’t translate into gains for gold companies in Toronto. Goldcorp Inc. shares fell 4.6% to close at $26.98, and Barrick Gold Corp. shares lost 6.15% to close at $32.80.

The subgold index lost 6.28%.

The materials index didn’t fare any better, losing 6.03% by day’s end. Within the group, Potash Corp. of Saskatchewan Inc. lost $6.96, or 6.81%, ending the day at $95.25. Agnico-Eagle Mines Ltd. lost $3.31, or 6.45% to close at $48.

Also down sharply was the real estate group on the TSX, which fell 7.09%. This included an 8.12% drop for units of Boardwalk Real Estate Investment Trust, which closed at $31.70, and a 3.4% drop for units of Brookfield Asset Management Inc., which closed at $25.27.

Stocks on the TSX Venture composite index shed 166.13 points, or 12.78%, to close at 1,134.10.

Investor nervousness was equally prevalent across the border, pushing the Dow Jones industrial average below 10,000 for the first time since 2004. The Dow closed down 369.88 points, or 3.6%, to close at 9,955.50.

The Nasdaq lost 84.43 points, or 4.34%, to close at 1,862.96, and the S&P 500 composite index shed 42.34 points, or 3.85%, to finish at 1,056.89.