NEW YORK -- U.S. stocks continued to drop Monday as a breakdown in Greece bailout talks weighed on market sentiment.
The Dow Jones Industrial Average dipped 107.67 points, or 0.60 percent, to 17,791.17. The S&P 500 fell 9.68 points, or 0.46 percent, to 2,084.43. The Nasdaq Composite Index lost 21.13 points, or 0.42 percent, to 5,029.97.
The two-day talks in Brussels, Belgium, between representatives of the Greek government and its creditors over the prerequisites for the disbursement of further aid to Greece broke up less than an hour Sunday.
Hopes to strike a deal now move to Thursday's Eurogroup meeting in Luxembourg, which many believe is the last chance before Greece's EU bailout expires by the end of June.
On June 30, the extension of Greece's second bailout expires. On the same day, Athens needs to repay some 1.5 billion euros ( about1.69 billion U.S. dollars) of loan installments to the International Monetary Fund.
European shares suffered big losses on Greece news Monday, with British benchmark FTSE 100 Index decreasing 1.10 percent.
In Asia, Chinese equities plunged Monday on worries about liquidity tension ahead of 23 pending IPOs this week, with the benchmark Shanghai Composite Index diving 2 percent.
Dampening investor sentiment, U.S. industrial production came out negative. After falling 0.5 percent in April, the U.S. industrial production decreased 0.2 percent in May, missing market consensus of a 0.2-percent gain, the Federal Reserve said Monday.
"Production is under pressure from low oil prices, affecting mining, and the strong dollar, affecting manufacturing. It's telling that while mining's troubles are well known, manufacturing growth has been absent even longer," said Chris Low, chief economist at FTN Financial, in a note.
Meanwhile, the June 2015 Empire State Manufacturing Survey indicates that business conditions worsened slightly for New York manufacturers. The headline general business conditions index fell five points to minus 2.0, its second negative reading in the past three months.
Investors also kept a close eye on the Federal Reserve's two- day meeting scheduled to start Tuesday.
The CBOE Volatility Index, often referred to as Wall Street's fear gauge, surged 11.68 percent to end at 15.39 Monday.
In other markets, oil prices went down Monday as Greek leaders failed to reach an agreement with its creditors.
Light, sweet crude for July delivery moved down 44 cents to settle at 59.52 U.S. dollars a barrel on the New York Mercantile Exchange, while Brent crude for July delivery decreased 1.26 dollars to close at 62.61 dollars a barrel.
The U.S. dollar dropped against most major currencies Monday as economic data from the country came out overall negative.
In late New York trading, the euro rose to 1.1292 dollars from1.1259 dollars in the previous session, while the greenback bought123.37 Japanese yen, lower than 123.46 yen of the previous session.
Gold futures on the COMEX division of the New York Mercantile Exchange rose Monday as the U.S. dollar showed weakness.
The most active gold contract for August delivery was up 6.6 dollars, or 0.56 percent, to settle at 1,185.80 dollars per ounce. Enditem
