U.S stocks on Monday dropped amid concerns about the impact of mortgage rate on the economy, pushing down shares of bellwethers such as Caterpillar Inc.
The Dow Jones industrial average dropped 0.51 percent at 13,271 as the Standard & Poor's 500 Index (SPX) fell 0.48 percent at 1,460.87. The Nasdaq Composite Index declined 1.03 percent at 2,608.68.
Shares of Caterpillar had a sharp decline on Dow sliding 2.6 percent to $71.52 on the New York Stock Exchange.
Exxon Mobil Corp. shares dropped 1.1 percent to $90.14 on the New York Stock Exchange.
There was a decline for January delivery of U.S. crude of 1.6 percent to $89.85 a barrel on the New York Mercantile Exchange on concern that slower economic growth would sap demand.
IBM shares also fell 1 percent to $104.74 on the NYSE.
On the Nasdaq, shares of Apple Inc, maker of iPod and iPhone had a sharp decline of 1.6 percent to $187.42.
Shares of Research In Motion, maker of BlackBerry devices fell 3.5 percent at $102.25 and this may contribute to Nasdaq's third straight day of losses.