Stocks on Wall Street tumbled in late selling on Monday with the S&P 500 closing below its 200-day average for the first time since mid- November 2012 on continued concern about the strength of the global economy.
The U.S. dollar posted its worst day in a year after comments from Federal Reserve officials hinted at delays in expected interest rate hikes.
The softer dollar lifted pressure off metals prices, but Brent crude oil fell to its lowest level in almost four years after key Middle East producers signaled they would keep output high even if that meant lower prices.
Traders on Wall Street were bracing for the full onslaught of the quarterly earnings season, with many expecting the next move in equities to take its cue from corporate outlooks for the rest of the year. Technical indicators dominated trading as the S&P 500 sank below the 1,900-point level and broke below its 200-day moving average.
Dow Drops
The Dow Jones industrial average fell 223.03 points, or 1.35 percent, to 16,321.07, the S&P 500 lost 31.39 points, or 1.65 percent, to 1,874.74, and the Nasdaq Composite dropped 62.58 points, or 1.46 percent, to 4,213.66.
Energy shares were among the day's biggest losers, with the S&P energy sector down 2.9 percent. Airline shares also slid, as news of a Texas nurse who contracted Ebola while caring for a dying Liberian patient triggered worries about travel.