NEW YORK—U.S. stocks tumbled as fresh worries over the progress of Europe's sovereign-debt negotiations spurred a selloff, largely erasing Friday's gains.
The Dow Jones Industrial Average lost 201 points, or 1.8%, to 11431 recently, hitting fresh lows in afternoon trading. The action followed a 166-point surge on Friday that pushed the Dow to a 2½-month closing high and catapulted the measure into positive territory for the year for the first time since Aug. 31.
The Standard & Poor's 500-stock index shed 16 points, or 1.3%, to 1208 and the technology-oriented Nasdaq Composite declined 42 points, or 1.6%, to 2626. All S&P 500 sectors except utilities stocks, seen as a defensive investment, lost ground. Materials and financial stocks led the index's decliners. Trading volume was relatively light: As of 1:00 p.m., composite volume on the New York Stock Exchange was about 1.8 billion shares.