The $S&P 500 index(.SPX.US)$ fell 75.75 points, or 1.7%, to 4412.53. The $Dow Jones Industrial Average(.DJI.US)$ retreated 413.04 points, or 1.2%, to 34308.08. The tech-heavy $Nasdaq Composite Index(.IXIC.US)$ declined 299.04 points, or 2.2%, to 13411.96.

The Nasdaq's fall builds on last week's 3.9% retreat after Fed officials signaled their intent to raise borrowing costs and shrink the central bank's balance sheet to quell inflation. Many tech stocks are valued based on expectations of growth far into the future and so are especially sensitive to rising rates. As tech stocks continued to come under pressure Monday, the S&P 500's heavily-weighted technology sector lost 2.6% for the day.

The war in Ukraine has boosted commodity prices, adding to inflationary pressures. Ukraine and Russia sent reinforcements into eastern Ukraine this weekend to prepare for what may become the war's biggest battles.

U.S. government bonds extended their selloff as investors face the likelihood of tighter monetary policy. The yield on the benchmark 10-year U.S. Treasury note rose to 2.779%, its highest since January 2019, from 2.713% Friday. Yields, which move in the opposite direction as bond prices, have climbed for four of the past five weeks.

Adding to the pressure, refiners in Turkey and elsewhere have continued to buy Russian crude, reducing demand for northwest European oil, said Helge André Martinsen, senior oil analyst at DNB Markets. The energy group was the worst performer of the S&P 500's 11 sectors, falling 3.1% on the day.

Investors are preparing to get their next deep look into corporate performance as earnings season kicks off in earnest this week. With inflation raising the costs of everything from energy to labor, investors will scour company results for signs of how businesses are coping. Still, analysts expect that earnings from companies in the S&P 500 rose 4.5% in the first quarter compared with a year earlier, according to FactSet.

$JPMorgan(JPM.US)$, $Blackrock(BLK.US)$ and $Delta Air Lines(DAL.US)$ are due to report Wednesday, followed by $Goldman Sachs(GS.US)$, and $Citigroup(C.US)$ Thursday.

Among individual stocks, $Twitter(TWTR.US)$ shares rose 78 cents, or 1.7%, to $47.01 after the company's chief executive said Elon Musk had decided not to join the board. Shares of $Tesla(TSLA.US)$, where Mr. Musk is chief executive, fell $49.56, or 4.8%, to $975.93.

$AT&T(T.US)$, which on Friday completed the planned merger of its film-and-TV empire with Discovery, rose $1.41, or 7.7%, to $19.63. Shares of the new company, $Warner Bros Discovery(WBD.US)$, added 31 cents, or 1.3%, to $24.78.

Stock markets mostly fell overseas. The Stoxx Europe 600 lost 0.6%. Shares of Société Générale rose 5% after the French lender said it was selling its entire stake in Rosbank and its Russian insurance units to Interros, a conglomerate controlled by metals billionaire Vladimir Potanin.

Hong Kong-listed shares of $NIO-SW(09866.HK)$ slid 11%. The electric-vehicle maker said it had to suspend production after some of its suppliers' operations were disrupted. Shares of $GEELY AUTO(00175.HK)$, a major Chinese car maker that owns Sweden's Volvo Cars, fell 7.2%, while Shenzhen-listed electric-vehicle leader $BYD Company Limited(002594.SZ)$ lost 4.5%.