U.S. stocks extend losses ahead of Fed meeting

U.S. stocks retreated further Monday as investors became cautious ahead of the Federal Reserve's policy meeting later this week.

The Dow Jones Industrial Average dipped 132.86 points, or 0.74 percent, to 17,732.48. The S&P 500 lost 17.01 points, or 0.81 percent, to 2,079.06. The Nasdaq Composite Index decreased 46.11 points, or 0.94 percent, to 4,848.44.

Investors are keeping a close eye on the U.S. central bank's two-day policy meeting, which will start on Tuesday, for more clues on the timing of a rate hike.

However, the possibility of a June rate hike becomes lower following much-worse-than-expected May nonfarm payroll numbers, which cast doubt over the health of the U.S. economy.

Analysts thought that Fed Chair Janet Yellen removed most of the rate hike drama from the Fed's policy meeting when she said in a speech last week that the recent disappointing job gains were "concerning."

Yellen avoided giving the timeline for further rate hikes by saying that she expected the federal funds rate to probably need to rise gradually over time to ensure price stability and maximum sustainable employment in the longer run.

Dampening investor sentiment, overseas stock markets also suffered big losses. European equities ended sharply lower Monday amid Brexit concerns. German benchmark DAX index at Frankfurt Stock Exchange dropped 1.80 percent, while British benchmark FTSE 100 Index lost 1.16 percent.

In Asia, Chinese stocks slumped Monday over weak investment data and drops on global equity markets. The benchmark Shanghai Composite Index plunged 3.21 percent to 2,833.07 points. Enditem