NEW YORK (CNNMoney) -- U.S. stocks had a promising start Monday, following the best week of the year, but gains were short-lived as early enthusiasm over a $125 billion bailout for Spanish banks fizzled, sending stocks tumbling into the red.
The Dow Jones industrial average (INDU) declined 143 points, or 1.1%, the S&P 500 (SPX) fell 17 points, or 1.3%, and the Nasdaq (COMP) lost 49 points, or 1.7%. All three indexes were up between 0.7% and 0.8% earlier in the day.
Over the weekend, members of the eurozone signaled that they may help recapitalize Spain's banking system after the country asked for €100 billion ($125 billion) from the group of nations.
While investors consider "the rescue of Spain as a rescue for the financial markets," they are still facing many unanswered questions, said Kathy Lien, director for currency research at Global Forex Trading.
"The Spanish bailout is a move in the right direction, but the European sovereign debt crisis is far from over," said Lien.
Investors are also cautious as they prepare for elections in Greece on Sunday. The concern is that anti-austerity political parties will win enough seats in parliament to derail the bailout program Greece secured earlier this year. The runoff is being viewed as a pivotal moment that could determine if Greece remains a member of the euro currency union or not.
The dollar rose against the euro, but fell versus the British pound and the Japanese yen.
Oil for July delivery slipped $1.40 to settle at $82.70 a barrel, the lowest since October 2011.
Gold futures for June delivery gained $5.40 to settle at $1,596.80 an ounce.
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