Investing.com -- U.S. stocks fell broadly capping a volatile month of trading in August, as heightened concerns of a September interest rate hike by the Federal Reserve offset a sharp rally in crude prices amid further indications of declining production.
Following a roller coaster, topsy-turvy week of trading last week, the Dow Jones Industrial Average fell substantially on Monday to close August down more than 1,000 points. It marked the worst month for the Dow in more than five years since May, 2010. The NASDAQ Composite index and the S&P 500 Composite index also dropped considerably on Monday to end a disappointing month in which both plunged by more than 6%. The S&P 500 suffered its worst month since May, 2012, when it plummeted by 6.3%. After setting an all-time high in May, the S&P 500 has lost nearly 13% in value.
The Dow fell 114.98 or 0.69% on Monday to close at 16,528.03, while the NASDAQ lost 51.82 or 1.07% to end the month at 4,776.51. The S&P 500, meanwhile, dipped 16.69 or 0.84% to 1,972.18, as nine of 10 sectors closed in the red. Stocks in the Utilities and Health Care industries lagged, each losing more than 1.5%, while energy stocks led after gaining more than 1%.
Shares in PSX rose by more than 2.35% during Monday's session after Warren Buffett's company Berkshire Hathaway (NYSE:BRKa) disclosed a $4.48 billion stake in the oil refinery. TWTR shares also gained more than 3.5% to 27.78, after analysts from SunTrust Robinson raised its rating in the social media network from a neutral rating to a buy.
The top performer on the Dow was CVX, which gained 0.56 or 0.70% to 80.99 on Monday. Only six of the 30 components on the Dow closed in the green. The worst performer was MRK, after a study on its Type 2 Diabetes drug indicated that it did not reduce hospitalization rates in relation to major cardiovascular events at a significantly higher percentage in comparison with its placebo. Shares in Merck (NYSE:MRK) fell 1.52 or 2.75% to 53.85 at Monday's close.
The biggest gainer on the NASDAQ was GMCR, which surged 2.49 or 4.60% to 56.60. Shares in Keurig Green Mountain (NASDAQ:GMCR), one of the world's largest coffee makers, are still down approximately 60% on the year. The worst performer was VRTX, which fell 6.53 or 4.87% to 127.52.
The top performer on the S&P 500 was CNX, which rose 0.84 or 5.84% to 15.50 during Monday's session. U.S. crude futures jumped more than 8% on Monday, after the U.S. Energy Information (EIA) lowered its crude production estimates for June and OPEC said it will consider meeting with producers to discuss the prolonged downturn in crude oil prices. Over the last three days, WTI crude futures have soared by more than 25% after falling to fresh six and a half year lows last week. VRTX was also the worst performer on the S&P 500, just below CELG which fell 5.96 or 4.80% to 118.08, after receiving a downgrade from analysts at Morningstar.
On the New York Stock Exchange, declining issues outnumbered advancing ones by a 1,763 to 1,370 margin.