U.S. stocks fell on Monday, dragged by technology shares, as weaker-than-expected economic data made investors worry about the strength of the U.S. economy.
Technology sector declined nearly 1.5 percent, the worst performer in the market, as many big-name technology stocks suffered significant losses.
Among the laggards, Amazon.com lost nearly 5 percent, Yahoo fell more than 2 percent, while Neflix ended down 1.84 percent.
Basic materials was the only one sector ended in the positive territory, but the gains were slashed to only 0.10 percent from more than 1 percent earlier in the session.
Increasing concerns on the outlook of the U.S. economy weighed heavily on Wall Street. Before the opening bell, the Federal Reserve Bank of New York reported that manufacturing in the New York region slowed down in May as the cost of raw materials soared.
The Empire State index fell to 11.88, well below the economists ' estimates of 20. In April the index hit the record high of 21.70.
Meanwhile, U.S. economic growth is expected to be slower than previously thought due to rising commodity prices, a tepid housing market and financial headwinds, according to a survey released by the National Association for Business Economics on Monday.
A panel of 41 economists cut its projections for 2011 U.S. economic growth from 3.3 percent to 2.8 percent, but maintained its forecast for moderate economic growth through 2012.
Investors also kept a close eye on the euro zone meeting in Brussels on the debt crisis, after International Monetary Fund Managing Director Dominique Strauss-Kahn was arrested on Saturday on charge of sexually assaulting a hotel maid in New York.
Among stocks in focus, NYSE Euronext slumped more than 12 percent, the biggest drop in S&P 500, after Nasdaq OMX Group Inc and Intercontinental Exchange withdraw the bid for NYSE Euronext, citing they would not win the approval for the deal from the Department of Justice's antitrust division.
As of Monday's close, the Dow Jones industrial average fell 47. 38 points, or 0.38 percent, to 12,548.37. The Standard & Poor's 500 dropped 8.30 points, or 0.62 percent, to 1,329.47. The Nasdaq Composite Index declined 46.16 points, or 1.63 percent, to 2,782. 31.
