Wall
Street sold off on Monday, pulled lower by further weakness in oil
prices as energy shares led declines, with major indexes retreating
after last week's strong gains.
Oil prices fell 6 percent on concerns of oversupply after news that Iraq's output reached a record last month.
The S&P energy group .SPNY dropped 4.5 percent, the worst performing sector. Exxon (XOM.N) and Chevron (CVX.N) each fell more than 3 percent, while ConocoPhillips (COP.N) tumbled 9.2 percent after Barclays said the company should cut its dividend by at least 75 percent.
The major indexes each fell more than 1 percent, reversing much of a two-session rally that marked Wall Street's first week of gains in the year. All 10 major S&P sectors finished the session lower.
During the poor start for the year for U.S. stocks, their performance has closely correlated with the price of oil. The commodity's dramatic 1-1/2-year slide has sparked broad concerns about a global economic slowdown.
"Better oil markets Thursday and Friday led to better equity markets. A $2 retracement in oil today, it's not surprising to see a retracement in the equity indices."
The Dow Jones industrial average .DJI fell 208.29 points, or 1.29 percent, to 15,885.22, the S&P 500 .SPX lost 29.82 points, or 1.56 percent, to 1,877.08 and the Nasdaq Composite .IXIC dropped 72.69 points, or 1.58 percent, to 4,518.49.
Investors will look for insight about the economy's direction later this week as many heavyweight companies report results. Federal Reserve policymakers meet on Tuesday and Wednesday for the first time since raising interest rates in December.
The S&P energy group .SPNY dropped 4.5 percent, the worst performing sector. Exxon (XOM.N) and Chevron (CVX.N) each fell more than 3 percent, while ConocoPhillips (COP.N) tumbled 9.2 percent after Barclays said the company should cut its dividend by at least 75 percent.
The major indexes each fell more than 1 percent, reversing much of a two-session rally that marked Wall Street's first week of gains in the year. All 10 major S&P sectors finished the session lower.
During the poor start for the year for U.S. stocks, their performance has closely correlated with the price of oil. The commodity's dramatic 1-1/2-year slide has sparked broad concerns about a global economic slowdown.
"Better oil markets Thursday and Friday led to better equity markets. A $2 retracement in oil today, it's not surprising to see a retracement in the equity indices."
The Dow Jones industrial average .DJI fell 208.29 points, or 1.29 percent, to 15,885.22, the S&P 500 .SPX lost 29.82 points, or 1.56 percent, to 1,877.08 and the Nasdaq Composite .IXIC dropped 72.69 points, or 1.58 percent, to 4,518.49.
Investors will look for insight about the economy's direction later this week as many heavyweight companies report results. Federal Reserve policymakers meet on Tuesday and Wednesday for the first time since raising interest rates in December.
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