The Dow dropped more than six-tenths of a percent, the S&P 500 slid 1.2% and the Nasdaq plunged roughly 1.8%.

After a Friday selloff, stocks opened higher after data showed retail sales increased more than expected in March.

But Crewe Advisors partner Louise Goudy Willmering says that while the headline number was strong, consumers are cutting back on major purchases due to higher interest rates.

"When you look under the hood, what we're seeing is, while consumers are definitely spending money in restaurants and bars and supplementing with grocery sales, they are definitely stepping back from furniture purchases, appliance purchases and some of those bigger ticket items, which certainly many people finance. So, with the advent of rates looking like they are higher for longer, maybe this will slow some of those inflationary numbers in the data."

Stock gains faded later in the session over concerns the hostilities between Israel and Iran could continue to flare. Treasury yields jumped, with the benchmark 10-year note hitting its highest level since November.

In company news, shares of Goldman Sachs rose nearly 3% after its first-quarter profit beat Wall Street estimates, fueled by a recovery in investment banking that lifted its earnings per share to the highest since late 2021.

Shares of Apple fell more than 2% after data from research firm IDC showed the company's smartphone shipments dropped about 10% in the first quarter of 2024.

Shares of Tesla tumbled more than 5.5% after the EV maker said it will lay off more than 10% of its global workforce, according to an internal memo seen by Reuters.

And shares of Salesforce stumbled more than 7% after Reuters, citing a source, reported that the company was in advanced talks to acquire software company Informatica.