Wall Street sank into the red on Monday, after weekend drone attacks knocked out much of Saudi Arabia's oil production and sent crude prices shooting higher.

The lower open threatened to break an eight-day winning streak for the benchmark Dow Jones Industrial Average, with the major US stock indices just below fresh record highs.

Read: Saudi Arabia Minister: Production Halted In Aramco Oil Refineries

Digesting a batch of poor economic data

Markets were also digesting a batch of poor economic data out of China and awaiting Wednesday's Federal Reserve announcement on monetary policy. Ten minutes into the day's trading, the Dow and broader S&P 500 were both down 0.4 percent at 27,112.32 and 2,996.52 respectively.

Read: US Locked And Loaded To Respond To Saudi Oil Attack, Says Trump

The tech-heavy Nasdaq was 0.5 percent lower at 8,139.64. While the spike in oil prices -- WTI benchmark crude was up a towering USD 5.32 at USD 60.17 per barrel -- sent oil stocks higher, investors may fear more expensive oil could further slow an already waning global economy. Oil supermajors Exxon Mobil and Chevron were up 2.6 percent and 2.7 percent respectively.

Fresh economic data on Monday showed activity in China slowed last month across the board, with the pace of industrial production, retail sales and investment in fixed assets all lower. In the United States, automaker General Motors was down 2.9 percent after unionized autoworkers began a nationwide strike over disagreements on wages, health care benefits and job security.

Read: Trump May Meet Rouhani Despite US Accusing Iran For Aramco Attacks

The Federal Reserve expected to announce an interest rate cut on

The Federal Reserve is widely expected to announce an interest rate cut on Wednesday, the second of the year, as the American economy slows with the rest of the world and President Donald Trump's trade conflicts drag on. Burkhard said that While the US has a cushion because it and Canada both produce plenty, leaving the US less reliant on oil from the Middle East, it's still a global market. if someone takes oil anywhere out of system it affects everybody.

Read: Energy Prices Hikes As Saudi Suffers Oil Attack, US Blames Iran