NEW YORK (TheStreet) -- Wall Street saw no fresh start to the week as stocks suffered their fifth day of losses on Monday, their longest losing streak in six months.

Markets pulled lower after a selloff in Chinese equities pressured global markets and exacerbated worries over the health of the world's second-largest economy.

The Dow Jones Industrial Average was down 0.71%, or 124 points. The S&P 500 fell 0.57% and the Nasdaq tumbled 1%.

China's Shanghai Composite tumbled 8.5% on Monday, its largest single-day drop since June 2007, in response to fears a government rescue plan was petering out. Stocks were lower after fresh data showed industrial profits in China down 0.3% in June after two months of gains. However, selling tripled in volume later in the session, long after data was digested.

"It comes as little surprise that Chinese stocks have resumed their rout in dramatic fashion, despite the government's best efforts to stabilize prices," said David Joy, chief market strategist at Ameriprise Financial. "The risk of a more severe slowdown in China than the government is willing to admit only increases with a falling stock market... and it will become increasingly difficult to convince investors that the economy really is growing at 7%."

The rout in Chinese stocks was having a negative impact on crude oil. Commodity investors feared a continued slowdown in the Chinese economy would further reduce demand. West Texas Intermediate crude closed 1.6% lower to $47.39 a barrel.

Energy stocks were the worst performers on markets Monday. Chevron (CVS) - Get Report , ConocoPhillips (COP) - Get Report , Shlumberger (SLB) - Get Report , BP (BP) - Get Report and Kinder Morgan (KMI) - Get Report fell, while the Energy Select Sector SPDR ETF (XLE) - Get Report dropped 1.4%.

U.S.-listed Chinese stocks were under pressure. E-commerce giant Alibaba (BABA) - Get Report fell 2%, smaller rival JD.com (JD) - Get Report stumbled more than 7%, E-Commerce China Dangdang (DANG) slid 2.5%, and major oiler PetroChina (PTR) - Get Report slipped 4.7%.

Teva Pharmaceuticals (TEVA) - Get Report jumped more than 16% after agreeing to buy Allergan's (AGN) - Get Report generic drug company for $40.5 billion. The deal marks the latest in a surge of mergers and acquisitions in the health care industry. Deals in the sector this year have already reached $180 billion.

UBS (UBS) - Get Report was 1.5% lower after reporting better-than-expected earnings in its most recent quarter. The Swiss bank earned 1.21 billion Swiss francs ($1.26 billion), up 53% from a year earlier and far higher than 878 million francs expected. Results were listed earlier after a Swiss newspaper published false numbers.

Fiat Chrysler Automobiles (FCAU) - Get Report fell 4.9% after being slapped with a record fine of $105 million for failing to commit to 23 recalls, totalling 11 million vehicles. The fine includes a $70 million cash fine, $15 million if more violations are found, and $20 million based on fixing current issues, according to The New York Times.

Qualcomm (QCOM) - Get Report was 0.53% higher after Morgan Stanley upgraded shares to "overweight" from "equal weight" with a $75 price target. The firm said the upgrade was due to continued market leadership, more positive chip industry conditions, and an attractive valuation.

Durable goods orders in the U.S. rose 3.4% in June, driven by strong bookings with passenger airlines. Business investment remained weak with orders for core capital goods gaining 0.9% in June. Economists expected the headline number to increase 2.6%.