Selloff Leaves Dow Down 201 Points

A major selloff swept across the market Monday, leaving most sectors in the red.

Traders continued to show concern over the broader economy ahead of a busy week of economic data. The Dow Jones Industrial Average dropped 201 points, or 2.4%, to 8339, its lowest close this month. The broader indexes were hit harder. The Nasdaq finished down 61 at 1766, and the S&P 500 slipped 28 to 893.

Commodities remained a major weight on the market. Energy and materials stocks fell sharply as near-term demand for oil and metals remained in question. On the Nymex, oil prices continued to slide. By 4:04 p.m., crude traded down $2.80 on the day at $66.75 a barrel.

Financials also gave up ground. Bank of America (BAC), Citigroup (C) and JPMorgan Chase (JPM) each posted substantial losses in afternoon trading.

In economic news, the World Bank lowered its global forecast for 2009. The bank cut its growth outlook to a contraction of 2.9%, down from a prior estimate of 1.7%.

Still, some investors saw signs of optimism; billionaire financier George Soros said the days would grow rosier from here on out. "Decidedly the worst is already behind us," Soros said in an interview with Polish news channel TVN24 over the weekend.

World markets were a mixed bag. In Asia, Japan's Nikkei finished up 0.4%, while Hong Kong's Hang Seng picked up 0.8%. In Europe, the U.K.'s FTSE gave back 2.6%.

During the last week, the Dow lost 260 points, or roughly 2.9%, as the rally faded amid falling commodities prices and concern over the pace of the economic recovery.

Later this week, traders will wrestle key housing data, an update on personal spending and the latest word on interest rates and inflation from the Federal Reserve. The Fed hands down its policy statement on Wednesday after a two-day meeting.