NEW YORK (CNNMoney) -- Stocks pared losses on Monday, but all three indexes still closed lower as worries that Spain may need a full-blown bailout sparked a global sell-off.
"There seems to be a pattern whereby markets sell hard into the close of European markets and then see some relief," said Mark Luschini, chief investment strategist at Janney Montgomery Scott. "Despite the comeback, Europe will continue to waffle the markets. It's all predicated on whether anything will be done to triage Spain's duress."
U.S. stocks remained under pressure as markets closed. The Dow Jones industrial average (INDU) sank 101 points, or 0.8%, after earlier shedding more than 220 points earlier. The S&P 500 (SPX) dropped 12 points, or 0.9%, and the Nasdaq (COMP) lost 35 points, or 1.2%.
The selling was widespread, with oil prices tumbling 4% and copper prices skidding 3.3%. The euro weakened further, falling as low as $1.207.
Eurozone finance ministers finalized initial bailout terms for Spanish banks last week, but observers fear that may not be enough. Spain's regional economies are also showing signs of struggle, with Valencia said to have requested emergency funding last Friday.
While Europe continued to dominate trading Monday, investors also had some corporate earnings to contend with. But analysts say Europe's debt problems will show up there, as well.
While nearly all companies that have reported so far have topped earnings expectations, analysts' forecasts were very low to begin with. In addition, just 45% of companies that have reported have topped revenue expectations, the lowest percentage since the first quarter of 2009, according to FactSet.
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