New York ? The election of an anti-war government in Spain further unnerved the stock market Monday, propelling the Dow Jones industrial average more than 130 points lower on fears that terrorists, emboldened by the events in Spain, would strike again.

“The Spain elections certainly have some ramifications on the war on terror, and the political implications aren’t great for the U.S.,” said Jay Suskind, head trader at Ryan Beck & Co. “Put that together with the lousy week we had last week, and there’s not much confidence in buying.”

The past week’s selloff brought an end to the market’s yearlong rally, which had started to taper off in mid-February. Resumption of the rally is unlikely for some time, said Russ Koesterich, U.S. equity strategist for State Street Corp.

“There’s been a big reduction in risk appetite over the past few months, and investors are becoming very critical,” Koesterich said. “The market has discounted a lot of good news, and there’s limited upside ahead. That doesn’t mean you should get out of the market, but the easy money’s behind us.”

The Dow fell 137.19, or 1.3 percent, to 10,102.89, its biggest drop since the 160.07 it lost March 10.

The Dow and Nasdaq were at their lowest levels since mid-December, while the S&P 500 was at its lowest level since late December.

Specialist Thomas Verdiglione, second from left, directs trades in shares of Nortel Networks Corp. at his post on the New York Stock Exchange. Nortel said it put its chief financial officer and controller on paid leave Monday while it reviews its financial statements. Nortel stocks fell .19 to .24.