Stocks fell on Monday as investor concerns grew that efforts to tackle the euro-zone debt crisis could stifle the global economic recovery.
In U.S. economic news, a gauge of manufacturing in New York state showed growth advanced at a slower pace in May, while a Chinese leading economic indicator showed growth may have already peaked for the country.
Demand worries hit commodities, including oil, which fell to a five-month low below $70 a barrel. Energy companies led the way down with Exxon Mobil falling 1 percent to $63.00. Freeport-McMoRan Copper & Gold dropped 4.2 percent to $66.84, as copper prices sank 6.1 percent.
The euro slid to a four-year low at one point as investors fretted that the steps some euro-zone nations are taking to cut their budgets will hinder economic growth.
It's a matter of executing and building in the austerity plans and putting them in place, so that you're not just throwing a lot of money at a situation with a lot of debt and increasing the problem without changing the underlying root of the problem, said Alan Lancz, president at Alan B. Lancz & Associates Inc in Toledo, Ohio.
The Dow Jones industrial average <.DJI> fell 83.66 points, or 0.79 percent, to 10,536.50. The Standard & Poor's 500 Index <.SPX> lost 9.28 points, or 0.82 percent, to 1,126.40. The Nasdaq Composite Index <.IXIC> declined 17.85 points, or 0.76 percent, to 2,329.00.
Shares of manufacturers tumbled, with Caterpillar , down 3.1 percent at $62.90 and ranking among the heaviest weights on the Dow.
Financial shares were also among the biggest losers with the S&P financial index <.GSPF> down 1.6 percent. The U.S. Senate is likely to hold a final vote on financial regulation reform on Wednesday or Thursday, a Senate Democratic aide said.
Shares of major U.S. home improvement chain Lowe's Cos fell 3.9 percent to $25.05 after giving a disappointing profit forecast for the year. The Dow Jones U.S. home construction index <.DJUSHB> slid 2.1 percent.
(Editing by Kenneth Barry)