U.S. stocks fell on Monday as investors booked profits after a strong run and several major banks announced large common stock offerings to repay government bailout funds.

The Nasdaq was little changed as buying into big-cap software makers offset profit-taking.

With government stress tests on big banks out of the way, investors opted to take gains on financial issues, sending JPMorgan Chase & Co down 4 percent to $37.38, and Bank of America Corp down 3 percent to $13.77.

U.S. Bancorp lost 5.3 percent to $19.45, Capital One fell 10 percent to $28.21, while BB&T Corp dropped 4 percent $25.30. The banks became the latest to seek additional capital by announcing stock offerings on Monday. The BKW Bank index <.BKX> lost 2.1 percent as investors worried about dilutive effects of the offerings.

Banks are going to need to raise capital, that's weighing on the market. We climbed a wall of worry, bought the rumor, and now we're selling the news, said Marc Pado, market strategist at Cantor Fitzgerald in San Francisco.

Sometimes you just get a little reminder that as much as we do believe that the bottom is in on the economy and market, it's not always straight-up smooth sailing.

The Dow Jones industrial average <.DJI> dropped 102.03 points, or 1.19 percent, to 8,472.62. The Standard & Poor's 500 Index <.SPX> fell 11.93 points, or 1.28 percent, to 917.30. The Nasdaq Composite Index <.IXIC> dipped 5.63 points, or 0.33 percent, to 1,733.22.

Nasdaq losses were limited by reassuring comments from German business software maker SAP AG on the state of the global economy. SAP's chief executive said the company expects glimmers of hope in the global economy in the second half of 2009.

Shares of SAP rival Oracle Corp, up more than 2.3 percent to $18.75, were among the top boosts to the Nasdaq.

Since reaching a 12-year low in early March, the Dow Jones industrial average is up 32.5 percent, and the S&P 500 is up 39.4 percent.

(Reporting by Edward Krudy; editing by Jeffrey Benkoe)