Stock markets in Canada and the U.S. plunged sharply on Monday, dragged down by renewed concerns over the U.S. banking sector and a hefty hit in oil futures.

In Toronto, the S&P/TSX composite index fell 311.5 points, or 3.3%, to close at 9,126.15.

The energy group dropped 6.5% as oil futures tumbled 8.8%, their biggest one-day drop in seven weeks. Crude oil for May delivery fell US$4.45 to end at US$45.88 a barrel on the New York Mercantile Exchange.

On the TSX, shares of Suncor Energy Inc. dropped 7.7% to $28.90 and Nexen Inc. fell 8.3% to $22.30.

Canadian Natural Resources gave up 6.3% to close at $53.90 and EnCana Corp. dipped 5.1% to $52.58.

Financial stocks shed 5.1% during Monday’s trading.

Sun Life Financial Corp. plummeted 7.7% to $26.85 and Toronto-Dominion Bank shares finished at $47.00, down 5.4%.

Manulife Financial Corp. shares dropped 7.3% to $19.30

Also sharply lower were shares of CIBC, down 6.3% to $50.52.

Meanwhile, the materials group was the only major group on the TSX to advance on Monday, gaining 2.7% as gold futures advanced. Gold for June delivery rose US$19.60, or 2.3%, to end at US$887.50 an ounce on the Comex division of the New York Mercantile Exchange.

The sub-gold index jumped 6.8%.

Shares of Barrick Gold Corp. surged 8.4% to $36.16 and Agnico-Eagle Mines Ltd. soared 10.6% to $58.59.

Shares of Kinross Gold Corp. rose $1.50, or 9%, to finish at $18.23.

Other materials stocks declined on Monday, including First Quantum Minerals Ltd., down 12.5% to $38.05.

The S&P/TSX Venture composite index fell 13.8 points, or 1.4%, to close at 975.43.

The Canadian dollar shed more than a cent and a half on Monday, to close at US80.74¢.

The main indexes south of the border also dropped on Monday.

The Dow Jones industrial average fell 289.60 points, or 3.6%, to 7,841.73, breaking a three-session winning streak.

The S&P 500 index dropped 37.21 points, or 4.3%, to 832.39.

The Nasdaq composite index shed 64.86 points, or 3.9%, to 1,608.21.

Shares of Sun Microsystems Inc. surged 36.8% on Monday after news that the company would be acquired by Oracle Corp. Sun shares finished at US$9.15 on the New York Stock Exchange, up $2.46. Shares of Oracle dipped 1.3% to US$18.82.

Shares of Bank of America tumbled 24.3% to US$8.02 after the company announced that first quarter net income more than tripled to US$2.81 billion, but said it expects the credit situation to worsen.

IE