U.S. stocks fell in volatile trading Monday, snapping a five-day winning streak as another round of worry over Greece's sovereign debt battered the market. Following stocks' best week in more than two months, the Dow Jones Industrial Average ended down 108.08 points, or 0.94%, at 11401.01, in a session that saw the measure drop by about 250 points within an hour of the opening bell, then partially recover in the last hour of the regular trading day. The Standard & Poor's 500-stock index shed 11.92 points, or 0.98%, to 1204.09. The Nasdaq Composite lost 9.48 points, or 0.36%, to 2612.83. All three measures had risen for five straight days last week. U.S. markets' focus was squarely on Europe, where Greek officials held a teleconference with officials from the European Union, the International Monetary Fund and the European Central Bank to discuss the country's compliance with the terms of its bailout agreement. A weekend meeting of European finance ministers had failed to show much progress on resolving the sovereign-debt crisis, with the inertia driving buyers from equity markets around the world Monday. U.S. stocks reversed most of their earlier loss late in the day after a Greek official's comment that the parties to the conference were close to an agreement. The move reflected the market's jittery attention to the sovereign-debt crisis. Financial stocks were the weakest-performing sector in the S&P 500, shedding 2.7%. Energy and materials stocks also fell sharply. Bank of America shed 24 cents, or 3.3%, to $6.99, to lead the blue-chip Dow lower. Morgan Stanley was the steepest decliner among S&P 500 components, falling $1.30, or 7.9%, to $15.15. Apple was a bright spot, rising $11.13, or 2.8%, to $411.63, setting a fresh lifetime high despite Monday's market downdraft.

European stocks slumped Monday and the euro remained weak after a weekend meeting of euro-zone finance ministers failed to offer any firm solution to the escalating euro-zone debt crisis and investors braced themselves for the rising prospect of Greece defaulting on its debt. The Stoxx Europe 600 index ended 2.3% lower at 224.96. The U.K.'s FTSE 100 closed down 2.0% at 5259.56. Germany's DAX fell 2.8% to 5415.91, but managed to claw its way back up from the psychologically important 5400-level. France's CAC-40 declined 3.0% to 2940.0. A speech by President Barack Obama on his budget-deficit plans and higher taxes for the wealthy had little impact on European stocks. Markets were also jittery as a conference call between the European Union, the European Central Bank and International Monetary Fund and the Greek finance minister was delayed till after the close of European equity markets. Banks bore the brunt of the selloff Monday. The Stoxx Europe 600 banks index fell 3.4%. In London, Lloyds Banking Group fell 6.7% following the announcement that Group Finance Director Tim Tookey is leaving to become chief financial officer of Friends Life, the U.K. life assurance project created by Resolution Ltd. Among other U.K. banks, Royal Bank of Scotland Group fell 5.7% and Barclays dropped 6.6%. Meanwhile, UBS closed down 1.9% as investors continue to absorb the shock of last week's rogue trader bombshell. In Paris, Societe Generale dropped 6.7% and BNP Paribas skidded 5.5%, while Commerzbank fell 4.1% and Deutsche Bank dropped 4.5% in Frankfurt. Elsewhere, Credit Suisse Group fell 6.2% after the Swiss bank agreed to pay EUR150 million to resolve an investigation by the Dusseldorf public prosecutors office relating to tax evasion. Shares of tire maker Michelin lost 6% in Paris after Morgan Stanley cut the shares to underweight from overweight. Mining shares dropped with metals futures, as copper prices posted particularly steep losses. Chilean copper miner Antofagasta sank 8.2% and Xstrata dropped 6.8%, while Anglo American fell 4.6%.

Asian stocks fell Monday as concerns about a Greek default rose on indications that Europe is losing patience with the country's efforts to cut its debt pile. Hong Kong's Hang Seng Index led the selloff, falling 2.8% to 18917.95, while the Shanghai Composite Index shed 1.8% to 2437.79. South Korea's Kospi declined 1.0% to 1820.94 and India's Sensex fell 1.1% to 16745.35. Japanese equity markets were closed Monday for a holiday. But Europe took center stage on Monday, with investors increasingly concerned about the lack of a concerted policy response to the region's debt issues. Financial stocks were among the worst performers, with Industrial Bank of Korea down 6.7% in Seoul. HSBC Holdings fell 2.6%, while Industrial & Commercial Bank of China lost 4.2%, and Bank of Communications dropped 3.9% in Hong Kong trading. Meanwhile, Hong Kong-listed apparel firm Esprit Holdings, which generates most of its sales from Europe, extended steep earning-related losses made last week with a 20% plunge Monday. China Coal Energy tumbled 17% before trade in the shares was halted, with reports saying a mine operated by the firm's parent in Shanxi province had been suspended after a fatal flooding incident.

Base metals closed lower on the London Metal Exchange Monday following a session that saw flagship copper slump 4.3% to its lowest level in more than nine months amid widespread risk aversion. Markets started the week on extremely shaky footing after a closely eyed meeting of European Union finance ministers over the weekend failed to produce an agreement on how to deal with the region's deepening debt woes. Of particular disappointment was news that the approval of the next bailout tranche for Greece has been postponed to the second week of October. Oil futures sank 2.6% Monday, pulled down by pessimism over Greek debt problems and U.S. growth prospects. Light, sweet crude for October delivery fell $2.26 to settle at $85.70 a barrel on the New York Mercantile Exchange the lowest since Aug. 26. Brent crude on the ICE Futures Europe exchange settled down $3.08, or 2.7%, at $109.14 a barrel. Heavy selling got started early as traders were disappointed by the lack of progress on Europe's sovereign debt crisis after a weekend meeting of the region's finance ministers. At one point, the Nymex contract was down nearly 3.5% before recovering. Gold futures slipped to a three week low as investors sold their holdings in the metal to raise cash to cover losses in other markets. The most actively traded gold contract, for December delivery, fell $35.80, or 2%, to $1,778.90 a troy ounce on the Comex division of the New York Mercantile Exchange, the lowest ending price since Aug. 25.