Technology stocks led the broad market slide after a report that suggested Apple cut back orders significantly from a parts supplier rattled investors.
Technology stocks took some of the biggest losses Monday.
The S&P 500 index dropped 54.79 points, or 2 percent, to 2,726.22.
At the close of regular trading, the DJIA - the main indicator for USA stocks - had lost 602.12 points, coming to rest at 25,387.18, while the Siamp;P500 index fell 1.97 percent to 2,726.22 and the NASDAQ index - which includes the important tech companies - dropped 2.78 percent to 7,200.87, Efe reported.More news: Westwood surges past Garcia, Oosthuizen to win in Sun City | AP sports
The tech-heavy Nasdaq had fallen furthest, losing 2.4 percent at 7,228.80. The Russell 2000 index of smaller companies gave up 30.70 points, or 2 percent, to 1,518.79.
The S&P 500 posted 29 new 52-week highs and 10 new lows; the Nasdaq Composite recorded 25 new highs and 161 new lows.
Monday's decline followed a hard month of October that saw the Dow lose 5 percent and the Nasdaq fall 9 percent.
Market sentiment was dented by Apple's decline as well as markets down in Europe, Larry Benedict, CEO & founder of The Opportunistic Trader, a US market research firm, told Xinhua.More news: Baby delivered alive after mother dies in United Kingdom crossbow attack
LIFELINE EXTENDED: Athenahealth jumped 9.6 percent to $131.96 after the struggling medical billing software maker received a $5.7 billion cash buyout offer. Several big retailers are due to deliver results this week, including Walmart, Home Depot, Williams-Sonoma, Nordstrom and J.C. Penney.
"With the bond market closed, there is a lack of catalyst to push the market higher", said Bell. The pound rallied on reports of advancement toward a Brexit deal. Oil futures rose earlier on news that Saudi Arabia and other major producers planned to reduce output.
The Dow Jones Industrial Average fell 113 points, or 0.5 per cent, to 25,870. Germany's DAX lost 1.8 percent and France's CAC 40 fell 0.9 percent.
In other energy trading, heating oil fell 0.8 percent to $2.16 a gallon and wholesale gasoline gained 0.9 percent to $1.64 a gallon.
Tech stocks were also weak in Europe as the pan-European STOXX 600 index lost 0.84 per cent. In Asia, markets finished mixed.More news: Kashima wins Asian Champions League for 1st time