U.S. stocks closed lower Monday amid elevated market volatility, extending last week's losses as the S&P 500 sank to a new 2022 low. The S&P 500 /zigman2/quotes/210599714/realtime SPX -0.12% dropped 1% to end around 3,655.52, while the Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA +0.10% fell 1.1% and the Nasdaq Composite /zigman2/quotes/210598365/realtime COMP -0.18% slid 0.6%, according to preliminary FactSet data. The S&P 500 ended below its previous closing low this year of 3666.77 on June 16. Wall Street's fear gauge has climbed amid fears over the Federal Reserve aggressively raising interest rates to fight inflation, with investors worried its hawkish stance will lead to a U.S. recession. The CBOE Volatility Index /zigman2/quotes/210598281/delayed VIX +5.14% climbed to more than 31 Monday, above its 50-day moving average of 23.86, FactSet data show, at last check. The yield on the 10-year Treasury note surged 18.3 basis points Monday to 3.878%, the highest rate since April 2010 based on 3 p.m. Eastern time levels, according to Dow Jones Market Data. The Dow ended in bear market territory, finishing around 29,260.81 Monday.