U.S. market indexes slid Monday with investors keeping an eye on developments in Europe regarding a possible rescue of Spain.
Spanish Premier Mariano Rajoy said last week Spain was not in need of international assistance but rumors persist other European leaders are pressing the premier to accept help for Spain's troubled banking sector.
Portugal, meanwhile, which has accepted international assistance, said it would inject $8.27 billion into three of its largest banks.
In early afternoon trading on Wall Street, early gains in the Dow Jones industrial average cooled down to a loss of 54.99 points or 0.45 percent to 12,063.58. The Standard & Poor's 500 lost 7 points or 0.55 percent to 1,271.04. The Nasdaq Composite gave up 9.80 points or 0.3 percent to 2,739.24.
The benchmark 10-year treasury note fell 20/32 to yield 1.523 percent.
The euro rose to $1.2487 from Friday's $1.2435. Against the yen, the dollar hit 78.36 from 77.99 yen.
In Tokyo, the Nikkei 225 index dropped 1.71 percent, 144.62 points, to 8,295.63.
London's FTSE 100 index is closed for a holiday.