U.S. stocks extend sell-offs after last week's big losses

U.S. stocks took a hit again Monday following last week's heavy losses, as sell-offs dominated the market after technical levels were broken.

The Dow Jones Industrial Average tumbled 223.03 points, or 1.35 percent, to 16,321.07. The S&P 500 sank 31.40 points, or 1.65 percent, to 1,874.73. The Nasdaq Composite Index slipped 62.58 points, or 1.46 percent, to 4,213.66.

After the slump, the blue-chip Dow closed at its six-month low, while the S&P 500 and the Nasdaq finished at the lowest levels since May.

The major stock indices opened slightly higher following last week's heavy selling amid global growth fears. The S&P 500 and the Nasdaq capped their biggest weekly losses since May 2012 in the past week, down 3.1 percent and 4.5 percent, respectively. Meanwhile, the Dow posted a weekly loss of 2.7 percent, sending the blue-chip index into negative territory for this year.

However, the stock market soon dipped below flatline and slumped into close after key support levels were broken through.

In absence of major economic data Monday, investors are also restlessly bracing for earnings results from major U.S. banks and other bellwether companies due out this week which are likely to become precipitating factors in the market move ahead.

Market volatility picked up in October, which was historically the wildest month for stocks. Wall Street had its best day of the year on dovish Federal Reserve minutes on Wednesday, followed by the Dow's worst point loss of this year on Thursday.

The CBOE Volatility Index, often referred to as Wall Street's fear gauge, soared 16.01 percent to end at 24.64 on Monday.

In other markets, crude prices went down Monday after Saudi Arabia, a key oil producer, reportedly signaled that it can accept lower oil prices.

Light, sweet crude for November delivery moved down 8 cents to settle at 85.74 U.S. dollars a barrel on the New York Mercantile Exchange, while Brent crude for November delivery shed 1.32 dollars to close at 88.89 dollars a barrel.

Gold futures on the COMEX division of the New York Mercantile Exchange rose Monday on a weaker dollar, with the most active gold contract for December delivery up 8.3 dollars, or 0.68 percent, to settle at 1,230 dollars per ounce.

The U.S. dollar retreated against other major currencies Monday as Federal Reserve officials said over the weekend that a sharp slowdown in the global economy could delay the increase of U.S. interest rates.

In late New York trading, the euro increased to 1.2679 dollars from 1.2615 dollars in the previous session, and the dollar bought 107.33 Japanese yen, lower than 107.84 yen of the previous session.