US stocks fall on Fed rate hike uncertainties

US stocks traded lower in the morning session on Monday, as uncertainties about the timing of interest rate hike still weighed on investors sentiment.

At midday, the Dow Jones Industrial Average shed 216.87 points, or 1.33 percent, to 16,097.80. The S&P 500 lost 33.10 points, or 1.71 percent, to 1,898.24. The Nasdaq Composite Index was down 92. 81 points, or 1.98 percent, to 4,593.69, reported Xinhua.

New York Federal Reserve President William Dudley said on Monday that the Fed remains on track for a likely rate hike this year.

Traders were also keeping a close eye on a speech from Chicago Fed President Charles Evans later on the day.

On Thursday, Federal Chair Janet Yellen said she anticipated a rate hike in the coming months.

On the economic front, the US Commerce Department said on Monday that US personal income in August increased 0.3 percent and personal consumption expenditures rose 0.4 percent.

Analysts said that the better-than-expected increase in consumer spending in August added to the case for an interest rate hike this year.

US stocks pared early gains to finish mixed Friday, as investors digested Yellen's speech and the second revision of US gross domestic product (GDP) data for the second quarter.