North American stocks sank Monday, as the Toronto market continued to suffer from losses in the resource sectors, and as U.S. markets worried over inflation and interest rate increases.

The S&P/TSX composite index dropped 200.37 points, or 1.79%, to 11,007.58.

All 10 of the TSX main sub-groups were down.

The energy index was off 3.21% as light, sweet crude for July delivery closed $1.23 lower at US$68.65 a barrel.

Canadian Natural Resources lost $1.95, or 3.59%, to $52.44.

The gold index lost 4.08%.

Bullion for August delivery ended down $9.30 at US$572.40 an ounce, off a high of around $730 in mid-May.

Goldcorp Inc. lost $2.29, or 7.39%, to $28.71.

The information technology group lost 2.86%.

Nortel Networks lost 23¢, or 9.09%, to $2.30 on the announcement that Nokia and Siemens had joined their mobile phone networks in an estimated US$30 billion deal.

The Canadian dollar settled at US89.30¢, up 0.21 of a cent.

The S&P/TSX Venture composite index slid 77.33 points, or 3%, to 2,502.60

In New York, the Dow Jones industrial average was down 73.89 points, or 0.67%, to 10,940.66. The S&P 500 I was down 11.44 points, or 0.91%, at 1,240.10, and the Nasdaq Composite Index was down 19.49 points, or 0.92%, at 2,110.46.