U.S. stocks closed sharply lower on Monday, extending the market's recent slump as investors continued to fret that the Federal Reserve could become more aggressive in raising interest rates. The Dow Jones Industrial Average DJIA, -0.87% fell 4.6%, or 1,175 points, to 24,346. On a percentage basis, the day represented the biggest one-day drop for the blue-chip average since August 2011. On a point basis, it was the Dow's biggest drop ever. The S&P 500 SPX, -1.11% fell 4.1%, or 113 points, to 2,649. The Nasdaq Composite Index COMP, -1.07% fell 273 points, or 3.8%, to 6,967, in its fourth-biggest one-day point decline ever. Monday represented the biggest one-day percentage drop for both the S&P and the Nasdaq since June 2016, when markets sold off in the wake of the U.K.'s vote to leave the European Union. The Dow, the S&P 500, and the Russell 2000 RUT, -0.37% all turned lower for the year on Monday, and they all neared correction territory, which is typically defined as a 10% drop from a recent peak. The Dow is 8.6 percentage points from its record, while the S&P is 7.8 percentage points. Even these moves-the magnitudes of which are historically quite common-represent notable reversals from recent trends. Prior to the day's drop, the S&P 500 had gone more than a year without a 5% drop, a stretch of quiet that was unprecedented in its length. The day's losses were broad, with all 11 primary S&P 500 sectors ending lower by at least 1%. Financials were the biggest decliners of the day, off 5%, while tech, industrials, health-care, energy, and telecommunications all dropped more than 4%. Exxon Mobil Corp. XOM, -1.61% shed 5.7% in its biggest one-day drop since Aug. 2011.