Chinese Economy, Possible Limits On Banks Drag U.S Stocks (XOM, CVX, MS, GS)

Oil retreated to $80 a barrel on Monday as speculations grew about the Chinese economy.

Speculation mounted that China will restrict growth in order to curb rising inflation, which increased concerns about the demand for energy. Exxon Mobil Corporation (NYSE: XOM) and Chevron Corporation (NYSE: CVX) were the biggest losers in trading on Monday, among 40 other energy companies.

Banking majors Goldman Sachs (NYSE: GS) and Morgan Stanley (NYSE: MS) fell almost 2 percent, with the Banking Senate Committee Chairman preparing to introduce the banking regulation bill, which will impose restrictions on banks' activities.

The Dow Industrial Average dropped 0.2 percent to 10,601.87, while S&P 500 fell by about 0.4 percent to 1145.21.