As investors changed course after taking into account the potential that the U.S. Fed may delay interest rate reductions, the major U.S. stock indexes closed down on Monday.

Post last week’s figures that revealed that services activity was strong in January as well as solid job growth, traders are closely watching Fed officials' remarks this week, particularly Chair Jerome Powell on Tuesday.

As long as the job market remains robust and inflation continues to decline, the United States may escape a recession, as reported by the U.S. Treasury Secretary Janet Yellen.

Aside from the utilities, most of the 11 major S&P 500 sector indexes were in the negative zone.

Analysts anticipate a 2.8% fall in the fourth quarter's S&P 500 companies' quarterly earnings.

The Nasdaq Composite dropped 119.63 points or 1.00%, at 11,887.33, the S&P 500 slipped by 25.28 points, or 0.61%, to close at 4,111.20 and the Dow Jones Industrial Average dropped 40.56 points, or 0.12% at 33,885.45.