An early rally fuelled by Spain’s banking bailout fizzled and US stocks have headed into negative territory, as the reality of more imminent risks confronting the eurozone sank in.

At the close on Monday the Dow Jones Industrial Average was down 142.97 points, or 1.14 per cent, to 12,411.23, after an opening spurt took it up some 81 points.

The broad-market S&P 500 fell 16.73 points, or 1.26 per cent, to 1,308.93.

The tech-rich Nasdaq Composite lost 48.69 points, or 1.70 per cent, to 2,809.73.

Traders also appeared to be taking profits after US equity markets scored their best week of the year last week.

The 100 billion euro ($A128 billion) Spain banking rescue on the weekend was a positive, but analysts said Spain still faces tough fiscal challenges and Greece’s coming election still risks putting a huge crack in the eurozone.

“Although news that Spain has requested money to shore up its banking system has been regarded as a positive development … there are still concerns about the precarious conditions – fiscal, financial, and economic – that exist in other corners of Europe,” said Briefing.com.