US stocks fall moderately

NEW YORK: Stocks declined moderately on Monday after sharp gains last week and as oil prices fluctuated on concerns over fighting between Russia and Georgia.

Oil market traders questioned whether the conflict between Russia and Georgia over the breakaway province of South Ossetia could lead to supply disruptions in the region. Some rebound also was to be expected after oil fell $4.82 on Friday, sending the stock market sharply higher.

Light, sweet crude rose 52 cents to $115.72 per barrel on the New York Mercantile Exchange.

Despite Monday's moves, Wall Street is relieved that the price of oil has fallen more than $30 from its July 11 high of $147.27, easing worries about overall inflation and a key pressure point for consumers.

In the first hour of trading, the Dow Jones industrial average fell 34.36, or 0.29 percent, to 11,699.96, after the blue chips' 300-point jump Friday.

Broader stock indicators also declined. The Standard & Poor's 500 index fell 3.95, or 0.30 percent, to 1,292.37, and the Nasdaq composite index fell 6.60, or 0.27 percent, to 2,407.50.

As with oil, a retracing of last week's steep stock market advance wasn't a surprise as some investors looked to cash in gains. The jump in stocks Friday led the Dow industrials to a run-up of 3.60 percent for the week. The Standard & Poor's 500 index advanced 2.86 percent last week and the Nasdaq composite index added 4.46 percent.

The dollar, whose recent strength has helped drive oil lower, was mixed Monday against other major currencies. Gold prices rose.