New York ? Interest rate fears caused a selloff Monday, with the Dow Jones industrial average closing below 10,000 for the first time since Dec. 10 and all three major indexes dropping to lows for the year.

The dread that has sent stocks tumbling during the past four weeks intensified in response to Friday’s employment report from the Labor Department that the United States gained 288,000 new jobs in April. Investors feared the news would prompt the Federal Reserve to raise rates as early as next month.

Broker John Panin, left, and specialist David Miranda, watch the numbers on the New York Stock Exchange trading floor. The Dow Jones industrial average closed Monday below 10,000 for the first time since Dec. 10.

“Of course, psychologically, Dow 10,000 has some short-term effects on the market,” said Stuart Freeman, chief equity strategist for A.G. Edwards & Sons. “Long-term, the markets still look at corporate fundamentals, earnings, that sort of thing. But we do have some inflation and interest rate fears in play which could keep things lower, at least for now.”

The Dow fell 127.32, or 1.3 percent, to 9,990.02 in heavy volume on the New York Stock Exchange and Nasdaq Stock Market. At one point, the Dow was down 183.11. Its close was the lowest for the blue chips since Dec. 10, the last time the Dow ended below 10,000.

“Investors do have some incentive to lock in gains,” Freeman said. “Stocks have done very, very well over the past 12 months, and this could be as good as it gets for the next few months. And you’re seeing a lot of rotation into traditionally defensive sectors such as health care and consumer staples.”