Investing.com - Falling oil prices sent U.S. stocks falling on Monday in a volatile session with hopes for more discretionary spending giving stocks a boost, though concerns cheaper crude stems from a cooling global economy sent equities falling at the closing bell.
At the close of U.S. trading, the Dow 30 fell 0.58%, the S&P 500 index fell 0.63%, while the Nasdaq Composite index fell 1.04%.
The CBOE Volatility Index index, which measures the outlook for market volatility, was down 3.13% at 20.42.
Oil prices have fallen in recent months on concerns that supply far outstrips demand, and a recent OPEC decision to leave output unchanged has exacerbated losses.
The United Arab Emirates said earlier that OPEC will stand by its recent decision not to trim output to shore up slumping oil prices, news that sent crude futures plunging on Monday.
London-traded Brent prices have fallen nearly 47% since June, when the commodity hit $115.71, while WTI futures are down almost 46% from a peak of $107.50 in June.
While cheaper gasoline prices may give U.S. consumers more discretionary income for holiday shopping, stocks fell on concerns that falling oil prices are also the product of a cooler global economy, which rattled nerves on Wall Street.
Mixed U.S. data added to Monday's volatility.
The Federal Reserve reported earlier that industrial production rose by 1.3% in November, beating expectations for a gain of 0.7%.
Industrial production for October was revised up to 0.1% from a previously reported decline of 0.1%.
The report added that the capacity utilization rate, a measure of how full firms are using their resources, rose to 80.1% last month from an upwardly revised 79.3% in October, beating market calls for an unchanged reading.
On the flip side, the New York Federal Reserve’s index of manufacturing conditions fell unexpectedly in December, dropping into negative territory for the first time in almost two years.
The Federal Reserve Bank of New York reported that its index of general business conditions came in at -3.6 this month, down from 10.16 in November. Analysts had expected the index to rise to 12.52.
On the index, a reading above 0.0 indicates improving conditions, below indicates worsening conditions.
The Empire State manufacturing index is seen as an early forecast of the Institute for Supply Managements factory survey.
Leading Dow Jones Industrial Average performers included Boeing Company (NYSE:BA), up 1.08%, Exxon Mobil Corporation (NYSE:XOM), up 0.35%, and AT&T Inc (NYSE:T), up 0.28%.
The Dow Jones Industrial Average's worst performers included McDonald's Corporation (NYSE:MCD), down 2.38%, Goldman Sachs Group Inc (NYSE:GS), down 1.74%, and International Business Machines (NYSE:IBM), down 1.49%.
European indices, meanwhile, ended the day lower.
After the close of European trade, the Euro Stoxx 50 fell 2.75%, France's CAC 40 fell 2.52%, while Germany's DAX 30 fell 2.72%. Meanwhile, in the U.K. the FTSE 100 fell 1.87%.
On Tuesday, the U.S. is to publish reports on building permits and housing starts.