The Nasdaq fell 1 percent on Monday while the Dow and S&P 500 indexes dropped near session lows as investors fretted about the economy's recovery prospects.

Indexes had briefly pared losses following data that showed a smaller-than-expected contraction in the services sector, but the boost was short-lived.

Top drags included shares in the technology and energy sectors.

The Dow Jones industrial average <.DJI> dropped 68.85 points, or 0.83 percent, to 8,211.89. The Standard & Poor's 500 Index <.SPX> lost 8.83 points, or 0.99 percent, to 887.59. The Nasdaq Composite Index <.IXIC> fell 25.79 points, or 1.44 percent, to 1,770.73.

(Reporting by Rodrigo Campos; Editing by Padraic Cassidy)