U.S. stocks finish in the red as Japan remains in focus (ext)

NEW YORK (CNNMoney) -- U.S. stocks came off session lows but finished in the red Monday, after Japan's leading stock index plunged in reaction to last week's massive earthquake and tsunami.

The Dow Jones industrial average (INDU) closed down 51 points points, or 0.4%. Earlier in the session, it had lost as many at 147 points.

S&P 500 (SPX) fell 8 points, or 0.6%, Meanwhile, the tech-heavy Nasdaq (COMP) lost 15 points, or 0.5%.

"The situation in Japan has created a lot of uncertainty in the market," said Dave Hinnenkamp, CEO of KDV Wealth Management. "We don't know what will happen in the oil market, or the impact on the global economy if this pushes Japan into a recession. There are a lot of questions, and investors will be tentative until they figure out where things are headed."

And while the threat of a nuclear crisis seems to be largely contained, Hinnenkamp added that investors will keep a close eye on developments and any changes could "rock the markets."

Japanese officials said Monday they will backstop the country's financial system, with a cash injection of more than $180 billion, to buffer it against the economic impact of the earthquake and tsunami.

The dollar fell slightly against the yen, after Japan's central bank pledged to support the nation's financial system in the aftermath of the quake. The U.S. currency was also lower against the pound and the euro.

Oil for April delivery rose 3 cents to $101.19 a barrel. Gold futures for April delivery rose $3.10 to settle at $1,424.90 an ounce.