Updated from 4:09 p.m. EDT

Stocks fell Monday, as a decline in commodity prices whacked mining and energy stocks and concerns built throughout the session about a weakening real estate sector.

The

Dow Jones Industrial Average

lost 72.44 points, or 0.66%, at 10,942.11, having been up by as many as 43 points and down 107 earlier. The

S&P 500

fell 11.40 points, or 0.91%, to 1240.14, and the

Nasdaq Composite

lost 19.54 points, or 0.92%, to 2110.42. Big tech losers included

Activision

(ATVI) - Get Report

, down 3.8%.

"Longer-term investor sentiment continues to deteriorate," said Ken Tower, chief market strategist with CyberTrader. "We're looking for a new consensus for economic growth, interest rates and inflation. There's a great deal of uncertainty. Unless we start to see some economic news that allows us to think the

Federal Reserve

will stop raising rates, people will be unwilling to shift money back into stocks."

Stocks touched their worst levels just after 1 p.m. when the National Association of Home Builders said an index of builder sentiment fell to its lowest level in more than a decade last month.

About 1.52 billion shares changed hands on the

New York Stock Exchange

, with decliners outpacing advancers by a 3-to-1 margin. Volume on the Nasdaq was 1.73 billion shares, with decliners beating advancers 11 to 4.

The 10-year Treasury bond was down 3/32 in price to yield 5.14%, and the dollar rose against the yen and euro.

Most commodity prices eased as traders priced in one and maybe two more quarter-point rate hikes from the Federal Reserve this summer. Crude futures were down 90 cents to close at $68.98 a barrel, while gold lost $9.30 to close at $572.40 an ounce. Copper fell 13.9 cents to $3.15 a pound and silver dipped 16 cents to $9.97 an ounce.

"There was a real lack of interest in equity buyers today," said Robert Pavlik, chief investment officer with Oaktree Asset Management. "There was no conviction at all today and losses were accelerated by a pullback in oil and commodity stocks. Liquidity has become an issue, being drawn away from the market."

Among resource and mining stocks,

Goldcorp

(GG)

slid 6.5%,

Alcoa

(AA) - Get Report

was off 3.3%,

Freeport McMoRan

(FCX) - Get Report

lost 2.8%,

Glamis Gold

(GLG) - Get Report

finished down 2.1% and

Newmont Mining

(NEM) - Get Report

was lower by 1.8%.

The energy sector was weaker across the board. The Philadelphia Oil Service Sector index fell 3.9%, the Amex Natural Gas index ended down 3.3%, and the Amex Oil Service Sector index slid 3.2%. Meanwhile, the Amex Gold Bugs index lost 3.4%, and the Philadelphia Gold and Silver index was off 2.9%.

"The pendulum has swung from extreme optimism six weeks ago to overdone pessimism last week," said Marc Pado, U.S. market strategist with Cantor Fitzgerald. "With quadruple witching behind us and very little economic news between now and the Fed meeting next week, the success of overcoming technical barriers will be very important."

To view Gregg Greenberg's video take on today's market, click here

The 200-day moving average on the S&P 500 is about 1260, 9 points above its Friday close.

Dallas Fed President Richard Fisher said during an interview with

CNBC

that the U.S. wasn't in danger of falling into a period of stagflation. Fisher also said that the U.S. economy may be "tapering off."

Meanwhile, China's central bank set measures to restrain the country's recent breakneck economic growth. The moves will "strengthen the banking system's liquidity management, further control the overly fast growth of credit and continue to rationally guide the scale of commercial banks' medium- and long-term loan issuances," according to a statement. Last Thursday, China reported an 18% rise in industrial production for May.

On the corporate front,

Nokia

(NOK) - Get Report

and

Siemens

(SI)

struck a deal to combine their wireless network operations in a new holding company in which each will hold a 50% stake. The companies hope to cut $2 billion of costs out of the combined entity by 2010, according to a release.

Nokia rose 12 cents, or 0.6%, to $20.09. Siemens was higher by $4.10, or 5.1%, to close at $83.90.

The Dow got limited support earlier from

Intel

(INTC) - Get Report

, which was upgraded to buy from hold at UBS. The firm said the chipmaker's lower cost structure should promote margin growth. UBS raised its price target to $23 from $21. Still, Intel finished the session down 6 cents, or 0.3%, to $18.24.

Another Dow component,

General Motors

(GM) - Get Report

, could see interest after supplier

Delphi

reached a deal to offer buyout packages to members of its second largest union. Delphi modeled the agreement with the International Union of Electronics workers on the pact it struck earlier with the United Auto Workers. GM finished the session up 75 cents, or 2.9%, to $26.35.

In addition, Lehman Brothers upgraded Dow component

Procter & Gamble

(PG) - Get Report

to overweight from equal weight, citing valuation. However, the stock was lower by 15 cents, or 0.3%, at $54.87.

Goldman Sachs

(GS) - Get Report

has looked inward to fill out its top ranks after the departure of CEO Hank Paulson to be Treasury secretary. After elevating Lloyd Blankfein to CEO, the bank on Sunday announced that Gary Cohn and Jon Winkelried will be Goldman's new co-chief operating officers. Goldman was lower by 25 cents, or 0.2%, to $143.75.

In earnings news,

Circuit City

(CC) - Get Report

swung to a fiscal first-quarter profit of $6.4 million, or 4 cents a share, compared with a loss of $13.1 million, or 7 cents a share, last year. Sales jumped 17.5% to $2.62 billion. The Thomson First Call consensus was for earnings of a penny a share on revenue of $2.47 billion. Still, shares lost 85 cents, or 2.9%, to $28.63.

CarMax

(KMX) - Get Report

posted fiscal first-quarter earnings of $56.8 million, or 53 cents, up from $37 million, or 35 cents a share, last year. Excluding items, the company earned 54 cents a share, beating the Thomson First Call average estimate of 38 cents a share. CarMax added $2.39, or 7.6%, to $33.89.

Nike

(NKE) - Get Report

said its board has approved a $3 billion buyback plan. The stock was down 8 cents, or 0.1%, to close at $83.07.

Overseas markets were mixed, with London's FTSE 100 adding 0.5% to 5626 and Germany's Xetra DAX jumping 1.2% to 5439. In Asia, Japan's Nikkei lost 0.1% overnight to 14,860, and Hong Kong's Hang Seng fell 0.5% to 15,769.

Stocks are coming off an extremely volatile week that saw the Dow swing by 100 points or more on three separate days. The cumulative moves in the major averages were relatively small over the five sessions, with the Dow adding 33 points, the Nasdaq losing 5 and the S&P 500 losing 1 point.

The major catalyst for investors last week was Fed commentary, including dovish remarks from Chairman Ben Bernanke on Thursday that helped sparked a 198-point Dow rally. On Monday, Atlanta Fed President Jack Guynn repeated remarks he made during a speech on June 7, saying that monetary policy is close to where it should be.