The Dow Jones industrial average fell 9.24 to 5,687.87. On Friday, the Dow gained nearly 30 points, shrugging off an early 85-point slide spurred by inflation worries after a surprisingly strong employment report.
Decliners led advancers by 1,250 to 1,114 on the New York Stock Exchange. NYSE volume totaled 334.42 million shares vs. 445.54 million on Friday.
Bond prices, which tumbled on Friday's report, worsened again on Monday. But stocks fared a little better as some investors remained optimistic about profit growth in a strong economy, despite the risk of inflation-fighting interest rate hikes by the Federal Reserve.
In broader markets, the NYSE composite fell 0.44 to 360.17, and the S&P 500 fell 1.15 to 672.16.
The Nasdaq composite rose 0.27 to 1,230.03, and the American Stock Exchange's market value index edged up 0.17 to 599.48.
The yield on the 30-year Treasury bond rose toward 7.1 percent, up from 7.05 percent late Friday and 6.9 percent late Thursday.
"Interest rates are the story of the day," said Thom Brown, market strategist, Rutherford, Brown & Catherwood in Philadelphia.
Higher interest rates hurt company profits by raising corporate borrowing costs and slowing sales. Rising bond yields also can hurt stock prices by making fixed-income investments more attractive, drawing investment money away from the equity markets.