Tumbling oil prices send stocks lower

The stock market took a stiff hit Monday as oil prices tumbled to a seven-year low, sparking a sell-off in energy stocks that helped wiped out a chunk of Friday's big rally that saw the Dow jump 370 points on a strong November jobs report.

Oil prices plunged nearly 6% Monday after OPEC decided last week not to constrain production despite an oversupplied global market and reports showed rising crude stockpiles in the U.S. Benchmark U.S. crude was dropped $2.32, or 5.8%, to $37.65 a barrel -- the first close below $38 since early 2009.

The steepening slide has oil prices down 29% in 2015 and 17% in the fourth quarter alone.

The Dow Jones industrial average fell 117  points, or 0.7%, to 17,731. The Standard & Poor's 500 index dropped 15 points, or 0.7%, to 2077 and the Nasdaq composite index fell 40 points, or 0.8%, to 5102.

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The plunge in crude prices triggered a slide in energy stocks that accounted for much of the broad damage to the market. Energy stocks led the major indexes lower as ExxonMobil (XOM) and Chevron (CVX) were the two biggest losers of the Dow components. Chevron dropped 2.7% and ExxonMobil fell 2.1%.

Losses in the rest of the energy group were even worse, The energy sector led cyclical groups lower, registering a bruising 3.7% loss on the day.

“No one in the energy patch is willing to support the price (of oil) and if they aren’t willing, the price will keep dropping,” said Mizuho Securities Chief Economist Steven Ricchiuto. “The whole world is facing excess supply as the global economy slows.”

In corporate deal news:

• Shares of Keurig Green Mountain (GMCR) soared 72% after an investor group led by JAB Holding agrees to buy the coffee beverage company for $13.9 billion.

Keurig sold for $14 billion to private-equity firm

• Electrolux took a hit after General Electric terminated its deal to buy the appliances business from the the Swedish-owned company due to antitrust issues. GE (GE) share fell 0.4% and Electrolux fell more than 13% on the Stockholm exchange.

Global stock markets were mostly higher following Wall Street's strong Friday rally.

European shares were higher as Germany's DAX index jumped 1.3% and France's CAC index gained 0.9%. Britain's FTSE was down 0.2%.

Japan’s Nikkei 225 index rose 1% and the Shanghai composite index gained 0.3%.  Hong Kong’s Hang Seng index lost 0.2%.

Friday, the Labor Department said employers added 211,000 jobs in November — more than investors expected and a sign that consumers are still spending and keeping the American economy afloat.

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U.S stocks surged Friday, after the healthy jobs report paved the way for a likely Federal Reserve rate hike later this month.

Contributing: Associated Press