Stocks on global markets extended their recent selloff on Monday, led by declines in energy shares, while U.S. Treasury yields receded from almost four-year highs overnight.
The S&P 500 and Dow Jones Industrial Average were down more than 1 percent on Monday after registering their worst weeks on Friday since early January 2016.
The S&P energy index, down 2.9 percent, was the biggest daily percentage decliner, followed by healthcare, down 2.2 percent.
Oil prices were lower, pressured by rising U.S. output and other factors.
Benchmark U.S. 10-year note yields surged to 2.885 percent overnight, the highest since January 2014, following data Friday that showed hourly wages rose in January.
The 10-year notes were last up 6/32 in price to yield 2.8318 percent, down from 2.852 percent late on Friday.
Signs that inflation is firming have raised some traders` expectations that the Federal Reserve may hike interest rates four times this year. Fed officials have indicated that three rate hikes are likely.
"Even if you think it`s gone too far, or even if you think we`ve sold off a little more than probably warranted at this point, you don`t really have those buyers that are willing to step in and stop it until we see some signs of slowing," said Blake Gwinn, an interest rate strategist at NatWest Markets in Stamford, Connecticut.
The Dow Jones Industrial Average fell 409.33 points, or 1.6 percent, to 25,111.63, the S&P 500 lost 38.45 points, or 1.39 percent, to 2,723.68 and the Nasdaq Composite dropped 72.23 points, or 1 percent, to 7,168.72.
The pan-European FTSEurofirst 300 index lost 1.51 percent and MSCI`s gauge of stocks across the globe shed 1.52 percent.
The euro pared some losses against the dollar after European Central Bank President Mario Draghi said the euro zone economy has strengthened enough to lift regional inflation towards the ECB`s 2-percent goal.
The dollar index rose 0.34 percent, with the euro last down 0.38 percent to $1.2413.
In commodities, U.S. crude fell 2.38 percent to $63.89 per barrel and Brent was last at $67.49, down 1.59 percent on the day.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)