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Debt Fears Drag Dow Below 10,000 - CNNMoney.com -- The Dow closed below 10,000 Monday for the first time in three months, with financial shares leading the way, as worries about the U.S. economy and European debt weighed on investor sentiment.

The Dow Jones industrial average tumbled 104 points, or 1%, ending at 9,908.39. The last time the Dow finished below 10,000 was Nov. 4, when it closed at 9802.14.

The S&P 500 index ended just below break-even. The Nasdaq composite shed 15 points, or 0.7%. Neither closed at notable lows. Since peaking at a rally high on Jan. 19, the Dow has lost 7.6%, the S&P 500 has lost 7.3% and the Nasdaq has lost 8.4%.

The major indexes have been on a decline for four weeks in a row. The optimism that propelled a 10-month rally off 12-year lows from last March has been replaced by cautiousness. Bets that an economic recovery was gaining momentum -- combined with trillions in fiscal and monetary stimulus -- fed the 2009 rally.

But so far in 2010, markets have been choppy and weak as investors wait for evidence that the still-germinating recovery is really taking hold, particularly amid the hard-hit labor market and housing industry.

Treasurys mixed ahead of auctions - CNNMoney.com -- Treasuries were mixed Monday as investors prepare for a weekly offering of U.S. debt, worth $81 billion, amid ongoing concerns about struggling European economies.

What prices are doing: The benchmark 10-year note fell 5/32 to 98-8/32, pushing the yield up to 3.58% from 3.56% late Friday. Prices and yields move in opposite directions.

The 2-year note ticked down 1/32 to 100-5/32, yielding 0.78%. But the 30-year bond held steady at 97-18/32. Its yield was 4.52%.

What's moving the market: The mixed action came one day before the Treasury plans to bring $40 billion worth of 3-year notes to market.

The U.S. will also offer $25 billion in 10-year notes Wednesday and $14 billion in 30-year bonds on Thursday. The auctions, which will settle on Feb. 16, are part of the government's quarterly refunding.

Bond prices often decline ahead of big auctions as investors adjust portfolios for the influx of new supply.

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