Stocks fell sharply on Monday, led lower by big banks like Citigroup and Bank of America , as talks on raising the U.S. debt ceiling stalled and investors fretted over fiscal problems in Europe.

The Dow Jones industrial average <.DJI> dropped 153.98 points, or 1.23 percent, to 12,325.75. The Standard & Poor's 500 Index <.SPX> dropped 15.99 points, or 1.21 percent, to 1,300.15. The Nasdaq Composite Index <.IXIC> dropped 37.59 points, or 1.35 percent, to 2,752.21.