U.S. stocks declined in early trade on Monday as fresh concerns over European debt crisis weighed on sentiment.

The S&P 500 Index declined 15.64 points, or 1.16 percent, to trade at 1,328.42 at 9:35 a.m. EDT. The Dow Jones Industrial Average fell 127.29 points, or 1.01 percent, to trade at 12,529391. The Nasdaq Composite Index declined 1.04 percent.

Investors continued to worry that sovereign debt problems in Europe may continue to spread. European Council President Herman Van Rompuy calls an emergency meeting of top officials to discuss the debt crisis, amid fears it could engulf Italy, the region's third-biggest economy.

“Both Italy and Spain are starting to look more vulnerable. The fear is that this is going to continue as the market starts focusing on the larger euro-region nations,” said Niels From, chief analyst at Nordea Bank AB in Copenhagen, Bloomberg reported.

Meanwhile, the earnings season is set to kick off with U.S. aluminum producer Alcoa slated to report quarterly earnings after the market closes on Monday. Analysts are expecting a second quarter profit of $0.32 per share from $0.13 per share a year ago. Shares of Alcoa Inc. (NYSE:AA) declined 1.95 percent to $16.06 in early trading.

U.S. stocks ended lower on Friday as a weak jobs report dashed hopes the economy was emerging from a soft patch.

The euro declined 1.44 percent to 1.4058 against the dollar and the yen gained 0.21 percent against the greenback.

Crude oil futures declined 1.2 percent to $95.05/barrel and gold futures gained 0.77 percent.

European stock markets are currently trading lower with FTSE 100 down by 68.831 points and DAX30 down by 159.67 points, while CAC 40 down by 96.38 points.