Stocks fell on Monday, with major indexes shedding more than 1 percent, with no deal in sight on raising the U.S. debt ceiling and investors still fretting over fiscal problems in Europe.

The Dow Jones industrial average <.DJI> dropped 135.17 points, or 1.08 percent, to 12,344.56. The Standard & Poor's 500 Index <.SPX> dropped 12.79 points, or 0.97 percent, to 1,303.35. The Nasdaq Composite Index <.IXIC> dropped 27.62 points, or 0.99 percent, to 2,762.18.