Major U.S. stock averages were mixed on Monday in choppy trade as crude oil prices kept falling, with both WTI and Brent dipping below $32 per barrel.
"Crude and Brent oil had a very rocky and wild start for this year, similar to the equity market, and the confidence in the commodity space is still far away from forming any kind of solid foundation. There is a strong possibility that we break below the $30-mark and the price could be trading between $25 and $30," Naeem Aslam, chief market analyst at AvaTrade, said in a note.
European markets also struggled for gains after more volatility in China.
China's Shanghai composite closed down more than 5 percent and the Shenzhen composite closed ended 6.6 percent lower on Monday. This came as the People's Bank of China raised the midpoint fix for the yuan against the U.S. dollar to 6.5626.
"Investors continue to fret over a number of issues facing investors in Chinese stocks," Simon Smith, chief economist at FxPro, said in a research note on Monday.
"Asian economies are slowing, in particular China, as evidenced once again over the weekend and it is how the authorities go about dealing with this that is spooking the markets. While they may have plenty of tools at their disposal, they are faced with a two pronged problem of pursuing both economic and market reform agendas," he added.
Treasury prices rose on Friday, after the nonfarm payrolls report for December coming in stronger than forecast. The unemployment rate averaged 5.0 percent and 292,000 jobs were created outside of the agricultural sector during the month.