Stocks extended losses on Monday, with the S&P 500 falling more than 4 percent in the first session since Standard & Poor's cut the United States' top-tier AAA credit rating, with banks among the hardest hit.

The Dow Jones industrial average dropped 345.91 points, or 3.02 percent, to 11,098.70. The Standard & Poor's 500 Index slid 48.04 points, or 4.01 percent, to 1,151.34. The Nasdaq Composite Index lost 105.47 points, or 4.16 percent, to 2,426.94.

(Reporting by Chuck Mikolajczak; Editing by Jan Paschal)