U.S. stocks fell in early trading Monday on further concerns about the strength of Europe's financial industry and economy.

In the first hour of trading, the Dow Jones industrial average fell 80.34, or 0.8 percent, to 10,113.05. The broader Standard & Poor's 500 index fell 6.82, or 0.6 percent, to 1,080.87, and the Nasdaq composite index fell 4.93, or 0.2 percent, to 2,224.11.

The drop comes after a tumultuous week that saw major U.S. indexes post their biggest one-day losses of the year on Thursday and then stage a partial rebound Friday. Major indexes have been hit hard in recent weeks on worries about European sovereign debt problems.

Major European indexes mostly fell, following a bailout over the weekend of a regional bank in Spain, one of the countries already dealing with ballooning deficits. The Bank of Spain stepped in to rescue Cajasur after it failed to complete a merger. It was only the second time Spain's central bank stepped in to bail out a regional lender.

The FTSE 100 index of leading British was down 16.85 points, or 0.3 percent, at 5,046.08 while France's CAC-40 fell 16.86 points, or 0.5 percent, at 3,413.88. Germany's DAX was 68.65 points, or 1.2 percent, lower at 5,760.60.

The euro fell against the dollar, dropping to $1.2359. There is uncertainty about whether countries like Greece, Spain and Portugal will be able to contain mounting debt through steep spending cuts. Investors are also worried that those budget cuts will upend an economic recovery in Europe and slow a worldwide rebound.

Investors brushed off gains in Asia, where China's president said the country will loosen its currency policy and adjust the exchange rate for the yuan. No timetable was given, however.

Spot gold was bid at $1,184.35 an ounce at 1233 GMT, against $1,175.15 late in New York on Friday.