The Dow Jones Industrial Average decreased 215.65 points, or 0.69 percent, to 31,072.61. The S&P 500 fell 32.31 points, or 0.84 percent, to 3,830.85. The Nasdaq Composite Index sank 92.37 points, or 0.81 percent, to 11,360.05.
Earlier in the day, all the three U.S. major indexes posted solid gains with the Dow up more than 350 points at its session highs.
Eight of the 11 primary S&P 500 sectors ended in red, with health care and utilities down 2.15 percent and 1.4 percent, respectively, leading the laggards. Energy rose 1.96 percent, the best-performing group.
Investors digested a slew of earnings reports.
Shares of Goldman Sachs climbed 2.5 percent after the financial giant delivered second-quarter profit and revenue that exceeded analysts' estimates.
Bank of America fell short of Wall Street's profit estimate, but revenue matched the analyst view. The stock closed roughly flat on Monday.
Johnson & Johnson, Netflix, Tesla and United Airlines are among the major companies on deck to report later this week.
Last week, the Dow slipped nearly 0.2 percent, while the S&P and the tech-heavy Nasdaq fell 0.9 percent and 1.6 percent, respectively.
"Market volatility looks set to persist until investors have greater clarity," UBS analysts said in a note on Monday, adding "the main driver of markets in the second half of 2022 will be investor perceptions of whether we are headed for stagflation, reflation, a soft landing, or a slump."
"In our base case for a soft landing, we think stocks will be largely rangebound with continued elevated volatility as investors asses the durability of economic and corporate profit growth in the face of aggressive Fed rate hikes and declining real consumer incomes," said Solita Marcelli, chief investment officer for the Americas at UBS Global Wealth Management.
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