The Wall Street fell on Monday as investors were concerned that Euro zone crisis will exert a downward pressure on the stock market.


Some of the investors were concerned that the European debt crisis could engulf countries other than Greece and Portugal, after the news that Standard & Poor's lowered its outlook on Italy's debt and Fitch ratings downgraded its view on Greece's debts.


Investors also doubted Spanish austerity measures after Spain's ruling Socialist Party was defeated in regional and municipal elections over the weekend.


On economic front, a report from the Federal Reserve Bank of Chicago showed that U.S. economic activity sunk in April to its lowest reading since August 2010, the latest evidence that the U.S. recovery was losing steam.


Besides, China's purchasing managers index declined to its lowest level in 10 months, indicating economic slowdown and therefore pressuring the crude markets.


As of shares, basic materials stocks dropped over 1.44 percent, leading the laggards on Monday. Technology sector was also one of the biggest losers on Monday with major index stocks dropping over 5 percent.


Meanwhile, financial shares suffered a lot, dropping 1.37 percent as investors worried that the second round of Quantitative Easing Policy will be ended in June and liquidity will be withdrawn at that time.


Monday's market was also influenced by commodities prices and dollar index. Debt concerns made investors more cautious and decide to get out of the commodity markets and hide into the safer areas. That was why the dollar index surged nearly 1 percent above 76.


Oil price dropped 2.40 percent to settle at 97.70 dollars a barrel on the New York Mercantile Exchange, making energy shares less attractive to investors. Energy shares declined nearly 1.66 percent on Monday, one of the biggest laggard.


The Dow Jones industrial average lost 130.78 points, or 1.05 percent, to 12,381.26. The Standard & Poor's 500 dropped 15.90 points, or 1.19 percent, to 1,317.37. The Nasdaq Composite Index plunged 44.42 points, or 1.58 percent, to 2,758.90.


VietNamNet/Xinhuanet