Wall Street falls as Dow Chemical tumbles

Stocks extended declines on Monday as the collapse of a joint venture between Kuwait and Dow Chemical threatened to unravel one of the large merger deals of the year and overshadowed gains in energy shares.

* Dow Chemical tumbled nearly 20 percent the day after Kuwait's decision to end a $17.4 billion petrochemical joint venture, igniting worries the largest U.S. chemical company would not be able to buy rival Rohm & Haas. Shares of Rohm & Haas slid close to 22 percent.

* The Dow Jones industrial average fell 89.93 points, or 1.06 percent, to 8,425.62. The Standard & Poor's 500 Index  was down 10.76 points, or 1.23 percent, at 862.04. The Nasdaq Composite Index lost 27.71 points, or 1.81 percent, to 1,502.53.